Max New York Life to pump in Rs 700 cr in FY10

Max India today said its life insurance venture -- Max New York Life Insurance -- would invest Rs 700 crore in this fiscal for expanding business.

"We plan to infuse Rs 600-700 crore in Max New York Life Insurance in 2009-10," Max India Chairman Analjit Singh told reporters after announcing the results of the group.

Max India holds 74 per cent stake in the life insurance venture while the remaining 26 per cent is with New York Life of the US.

The fund would be invested by the joint venture partners in proportion to their stake, he said.

Asked if Max India would be raising fund for infusion in the insurance business, Singh said that the company intends to raise Rs 500 crore in next six months through private placement.

The company would raise Rs 500 crore from equity in the medium term depending on the FDI policy stance of the government with regard to the insurance sector.

During 2008-09, Max New York Life made a capital infusion of Rs 750 crore.

The paid-up capital of the company stood at Rs 1,782 crore at the end March 2009 against Rs 1032 crore at the end of financial year 2007-08.