Axis Bank (L) and Max Life Insurance(R) logos
Credit: Reuters, Wikimedia Commons
Axis Bank acquired additional equity shares of Max Life Insurance Company, a unit of Max Financial Services, for Rs 3.36 billion (Rs 336 crore), the private lender said on Wednesday.
The bank's board of directors approved the proposal to acquire Max Life shares, raising Axis entities' total holding in the insurance firm to 19.99 per cent from 19.02 per cent.
Axis entities include the bank as well as investment solutions provider Axis Securities and financial services provider Axis Capital.
Shares of the bank, India's fifth largest by market capitalisation, jumped as much as 2.2 per cent after the news. The stock was among the top gainers on the Nifty 50 index.
Axis entities' had raised their holding in Max Life to 19.02 per cent from 12.99 per cent earlier in April, originally acquiring a stake in the company in 2020.
Max Financial Services, Max Life Insurance's holding company, engages in investment business and provides management advisory services.