You are here: Home » Companies » News
Business Standard

Max Financial gets Irdai nod for share swap agreement with Mitsui Sumitomo

Irdai's approval takes Max Financial Services one step closer to the consummation of its deal with private lender Axis Bank

Topics
Max Financial | Mitsui Sumitomo | Axis Bank

Subrata Panda 

Insurance, Irdai
Illustration: Binay Sinha

Services (MFS), the parent company of Max Life Insurance, has received an approval from the Insurance Regulatory and Development Authority of India (Irdai) to swap Mitsui Sumitomo’s stake in Max Life Insurance with shares of the company, thus consolidating its holding in the life insurance arm.

The transaction entails swapping Mitsui Sumitomo's 20.6 per cent stake in Max Life Insurance with 21.9 per cent stake in MFS, which will result in MFS's holding more than 93 per cent stake in the life insurance company. MFS will issue and allot 75.4 million shares, equivalent to 21.87 per cent of the paid-up share capital to Mitsui Sumitomo, according to the agreement.

Earlier this month, Services got Department of Economic Affairs (DEA) on the share swap agreement. Irdai’s approval takes Services one step closer to the consummation of its deal with private lender Axis Bank, wherein the lender and its subsidiaries, Axis Capital Limited, and Axis Securities Limited (Axis Entities), will take upto 19 per cent stake in Max Life, in accordance with existing laws and regulations.

Mohit Talwar, MD, Max Financial and Vice Chairman, Max Group, said,“IRDAI’s approval is a very important milestone for the implementation of our Share Swap transaction. We will work to close the transaction as soon as possible.”

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, November 28 2020. 14:46 IST
RECOMMENDED FOR YOU
.