Max India is reportedly engaged in discussion with four private equity firms, to dispose of a 22% stake in Max Life Insurance.

A source close to the development was quoted by The Economics Times as saying: "The stake sale could fetch about Rs 4,000 crore, which would value the company at anywhere from Rs 16,000 crore to Rs 18,000 crore."

TPG, Carlyle Group, Blackstone Group and Apollo have been contacted for the stake sale.

Another source close to the development told the publication: "If we take the deals in the insurance space that have happened in the last couple of years, Indian insurance companies are valued at anywhere between 3.1 to 3.5 times the embedded value."

At present, Max India owns approximately 70% shareholding, Axis Bank holds nearly 4%, while Japan’s Mitsui Sumitomo Insurance controls the residual 26% in Max Life.