Axis Bank has wrapped the acquisition of a 12.99 % stake in Max Life Insurance Company, the fourth-largest insurance firm in India.
The lender acquired the stake together with its subsidiaries Axis Capital and Axis Securities (collectively referred to as Axis Entities).
Axis Entities reserve the option to acquire the remaining up to 7% stake in one or more tranches over the course of the next few years.
Axis Bank will now become the co-promoters of Max Life Insurance Company.
“With the conclusion of this transaction, Max Life’s Board will be strengthened further, with co-option of three nominee directors of Axis Entities on its Board,” the private lender said in a regulatory filing.
The deal has been completed following the receipt of approval from Insurance Regulatory and Development Authority of India (IRDAI) in February this year.
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The IRDAI approval was an integral step for the transaction that was first announced in April last year.
In November last year, Axis Bank revised the deal terms following an objection of the central bank of the country and agreed to acquire up to 19% stake in the insurer.
In the first leg, Axis Bank is expected to acquire up to 9% in Max Life Insurance, the fourth-largest insurance firm in India. Its subsidiaries Axis Capital and Axis Securities is expected to purchase up to 3% share capital of Max Life.
Axis Bank managing director & CEO Amitabh Chaudhry said: “We are delighted to see the strategic partnership come through. Axis Bank has been a long-term partner to Max Life and together we have contributed to deepening insurance penetration in India over the last decade.
“We have the opportunity now to shape the future of the industry through continued leadership in products, technology, and customer centricity. We are confident this venture will enhance the value for all the stakeholders of Axis Bank and Max Life.”