Axis Bank rallies 4% on stake buy in Max Life Insurance
The stock rose 3.9 per cent to hit a high of Rs 389.90 on BSE. At this price, the stock is just 6 per cent away from its 52-week low of Rs 366.65 hit on January 18.
By ET Online |
NEW DELHI: Shares of Axis Bank closed higher by 4.44 per cent in trade on Tuesday after the bank informed BSE that it has raised its stake in Max Financial Services' insurance JV Max Life Insurance by 4.99 percentage points to 5.99 per cent from 1 per cent earlier, for a total consideration of Rs 95.75 crore.
The stock rose 3.9 per cent to hit a high of Rs 389.90 on BSE. At this price, the stock is just 6 per cent away from its 52-week low of Rs 366.65 hit on January 18.
In a filing to the third largest private lender said, “The bank has purchased 9,57,48,762 shares, or 4.99 per cent equity stake, in Max Life Insurance Company Limited from Max Financial Services, formerly known as Max India, and Mitsui Sumitomo Insurance Company Limited for a total cash consideration of Rs. 95.75 crore.
“Out of this, Axis Bank has acquired 7,65,60,635 shares or 3.99 per cent equity stake in MLIC, from MFSL for an aggregate cash consideration of Rs. 76.56 crore and 1,91,88,127 shares, or 1 per cent equity stake in MLIC, from MSI for an aggregate cash consideration of Rs 19.19 crore, post receipt of requisite regulatory approvals,” the bank said.
At this price, Max Financial Services insurance business is valued at Rs 1919 crore. The total mcap of the Max group company stood roughly at Rs 9,000 crore in trade on Tuesday.
The stock rose 3.9 per cent to hit a high of Rs 389.90 on BSE. At this price, the stock is just 6 per cent away from its 52-week low of Rs 366.65 hit on January 18.
In a filing to the third largest private lender said, “The bank has purchased 9,57,48,762 shares, or 4.99 per cent equity stake, in Max Life Insurance Company Limited from Max Financial Services, formerly known as Max India, and Mitsui Sumitomo Insurance Company Limited for a total cash consideration of Rs. 95.75 crore.
“Out of this, Axis Bank has acquired 7,65,60,635 shares or 3.99 per cent equity stake in MLIC, from MFSL for an aggregate cash consideration of Rs. 76.56 crore and 1,91,88,127 shares, or 1 per cent equity stake in MLIC, from MSI for an aggregate cash consideration of Rs 19.19 crore, post receipt of requisite regulatory approvals,” the bank said.
At this price, Max Financial Services insurance business is valued at Rs 1919 crore. The total mcap of the Max group company stood roughly at Rs 9,000 crore in trade on Tuesday.
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