 "Max Financial surges 16% on report of Axis Bank eyeing stake in Max Life")
Shares of Max Financial Services (MFS) surged 16 per cent to its fresh 52-week high of Rs 596 on the BSE on Thursday on reports that Axis Bank is in talks to acquire more than 20 per cent stake in Max Life Insurance through fresh issue of equity.
MFS is the holding company of Max Life Insurance (Max Life) -- India’s largest non bank-owned life insurer. Max Life offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners.
“Axis Bank, India’s fourth-largest private sector lender in terms of market capitalisation, is set to acquire more than 20 per cent stake in Max Life Insurance through fresh issue of equity,” The Economic Times said in a report quoting multiple sources.
The proposed deal is aimed at building a strategic and long-term relationship with Axis Bank, which contributes more than 54 per cent to Max Life’s revenue, the report said.
“To enhance value creation for all its stakeholders, Max Life is actively exploring longer term partnership options that can further solidify its partnership with Axis Bank,” MFS said in 2018-19 annual report.
Meanwhile, according to a CNBC TV18 report, MFS and Max Life have called a joint board meeting on Thursday to discuss stake sale of Max Group chairman Analjit Singh in a group company.
“With a new individual tax code and Axis Bank embracing open architecture, we expect business growth momentum to slow down in FY21-22E. Additionally, we continue to watch out for the renewal of partnership with Axis Bank,” analysts at HDFC Securities said in Q3FY20 results review. However, the stock was trading above the brokerage target price of Rs 560 per share.
At 10:01 am, shares of MFS were trading 15 per cent higher at Rs 593 on the BSE. The trading volumes on the counter jumped more than four times with a combined 11.9 million shares changing hands on the NSE and BSE so far.
MFS is the holding company of Max Life Insurance (Max Life) -- India’s largest non bank-owned life insurer. Max Life offers comprehensive long-term savings, protection and retirement solutions through its high-quality agency distribution and multi-channel distribution partners.
“Axis Bank, India’s fourth-largest private sector lender in terms of market capitalisation, is set to acquire more than 20 per cent stake in Max Life Insurance through fresh issue of equity,” The Economic Times said in a report quoting multiple sources.
The proposed deal is aimed at building a strategic and long-term relationship with Axis Bank, which contributes more than 54 per cent to Max Life’s revenue, the report said.
“To enhance value creation for all its stakeholders, Max Life is actively exploring longer term partnership options that can further solidify its partnership with Axis Bank,” MFS said in 2018-19 annual report.
Meanwhile, according to a CNBC TV18 report, MFS and Max Life have called a joint board meeting on Thursday to discuss stake sale of Max Group chairman Analjit Singh in a group company.
“With a new individual tax code and Axis Bank embracing open architecture, we expect business growth momentum to slow down in FY21-22E. Additionally, we continue to watch out for the renewal of partnership with Axis Bank,” analysts at HDFC Securities said in Q3FY20 results review. However, the stock was trading above the brokerage target price of Rs 560 per share.
At 10:01 am, shares of MFS were trading 15 per cent higher at Rs 593 on the BSE. The trading volumes on the counter jumped more than four times with a combined 11.9 million shares changing hands on the NSE and BSE so far.
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