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Max Financial to raise Rs 5K cr to fund insurance biz

Press Trust of India  |  New Delhi 

(MFS) plans to raise Rs 5,000 crore through preference issue and qualified institutional placement to fund growth in its subsidiary firm

Max Life has been seeking acquisition opportunities in the space, with a special focus on insurers with strong distribution franchise, MFS said today.

"The company will raise Rs 5,000 crore through a preferential issue/qualified institutional placement.

"The proceeds from the transaction/issue will be invested in the company's subsidiary to actively pursue growth opportunities through acquisitions," MFS said in a statement.

The company also informed that Max Life's AUM has crossed the Rs 50,000 crore mark for the first time.

Commenting on the growth ambitions, Rahul Khosla, President, and Chairman, said, "Max Life is well capitalised and continues to deliver strong growth through a well-balanced product portfolio, high quality distribution partnerships and a market leading agency force".

The company will also pursue inorganic growth opportunities and is actively seeking high quality life insurance assets, he said.

"Enabled by the fund raising approved by the today, we are committed to continue providing the capital the business needs to fulfil its growth aspirations," Khosla said.

There is now sharper focus than ever before to deliver on new avenues of growth, including through bancassurance and acquisition opportunities. Acquiring a high quality life insurance company would enable expansion on both these fronts, said Mohit Talwar, Managing Director,

"Max Life has been on a steady growth trajectory over the past 5-6 years, with remarkable improvements in its key health metrics such as Embedded Value (EV), Value of New Business (VNB) and New Business Margin (NBM)," Talwar said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 09 2018. 16:50 IST