Shares of Axis Bank advanced over 4% in Thursday’s morning trade after Max Financial Services said the Insurance Regulatory and Development Authority of India (IRDAI) has given its approval for the acquisition of up to 12% stake in Max Life Insurance by Axis Bank and its subsidiaries Axis Capital and Axis Securities (together Axis entities).
The scrip traded 4.23% higher at Rs 780.40 at around 11.15 am (IST), while the benchmark BSE Sensex was up 440 points, or 0.87%, at 51,222.
As per the proposed transaction, Axis entities have the right to acquire up to 19% stake in Max Life; of which, Axis Bank proposes to acquire up to 9%. Axis Capital and Axis Securities together propose to acquire up to 3% of the share capital of Max Life in the first leg of the transaction, according to a statement.
In addition, Axis entities have the right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, which they intend to acquire over the course of the next few years, it said.
