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

Max Financial 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