Private lender Axis Bank said on Monday that it has reduced the size of the stake that it plans to buy in Max Life Insurance to 17 per cent from 29 per cent. Axis Bank, which already holds a minority stake in Max Life, will own an 18 per cent interest in the insurer after the deal, the Mumbai-based lender said in a regulatory filing. "Axis Bank now proposes to acquire 17.002 per cent of the equity share capital of Max Life, resulting in total ownership of 18 per cent post the transaction," it said.
Earlier in April this year, Axis Bank had said it will acquire 29 per cent stake in Max Life Insurance Company from Max Financial Services Limited (MFSL), the flagship listed company of Max Group, in order to strengthen its position in the life insurance industry.
The financial terms of the revised deal were not disclosed in the filing, however according to news agency Reuters, initially Axis Bank had planned to raise its stake in the insurer to 30 per cent for about Rs 1,590 crore.
Axis Bank is the third largest private bank and Max Life is the fourth largest private life insurer in India.
At Monday's closing bell, the Axis Bank stock closed at Rs 445.70, up 1.20 per cent, while Max Financial Services ended trading 1.38 per cent below previous closing mark.