Birla, Kotak look to pick 24% stake in Max Financial

Suitors are making a beeline for Max Financial Services now that the merger talks with HDFC Life have fallen through. ET NOW knows of at least two suitors that are hoping to buy a significant stake in Max Financial. Sources say Kotak as well Aditya Birla Capital have held preliminary and exploratory talks with Max Financial's promoter Analjit Singh over this.

Sources say AB Capital has evinced an interest to buy 24% stake in Max Financial as this will help avoid making an open offer and is good enough to merge Max Financial's subsidiary Max Life with its own Birla Sun Life.

Interestingly, this is not be the first time that the Birla company has pursued Max Financial Services. ET Now learns that HDFC Life had beaten AB Capital's price to enter exclusivity talks with Max Financial Services.

Then, there is Kotak that has been prowling for acquisitions since its mega Rs 5800 cr QIP earlier this year and has even been rumoured to be eyeing Axis Bank. Sources say Kotak is also keen to buy a significant stake in Max Financial and sees synergies with the latter's Bancassurance agreement with Axis for life insurance products. This, according to sources, is appealing to Kotak as it also offers opportunities for cross-selling products and services.

ET Now reached out to all the parties with detailed queries, and all three i.e. Max Financial, Kotak and AB Capital declined to comment.