Axis Max Life Insurance has announced a strategic capital infusion of up to ₹389 crore from its promoter, Axis Bank Limited. This investment, executed through a preferential issue of 2,50,56,200 equity shares, is designed to support the company’s future growth initiatives. Upon successful completion of this issuance, Axis Bank will increase its stake in the insurer, while the aggregate shareholding of the Axis group is set to reach 19.99%.
Strategic Capital Infusion
In a move to strengthen its financial position and facilitate future growth, the Board of Directors of Axis Max Life Insurance has approved a proposal for the issuance of equity shares on a preferential basis. The company will issue 2,50,56,200 fully paid-up equity shares to Axis Bank Limited, raising an aggregate amount of ₹389 crore.
Pricing and Valuation
The shares are being issued at a price of ₹151.90 per share, which includes a share premium of ₹141.90. This valuation has been determined by registered valuers and category 1 merchant bankers utilizing the discounted cash flow method, ensuring compliance with current market standards.
Shareholding Impact
This capital injection significantly reshapes the equity structure of the insurer. Following the allotment, Axis Bank’s individual stake in Axis Max Life will rise to 17.23%. When combined with the holdings of Axis Capital Limited and Axis Securities Limited, the Axis group will collectively hold a 19.99% stake in the company. Max Financial Services will retain the remaining approximately 80.01% of the equity share capital. The proposal is currently subject to approval from the company’s shareholders and other requisite corporate clearances.
Source: BSE
