The Board of Max Financial Services Limited approved a plan to raise up to ₹2,000 Crores through the issuance of fully paid-up equity shares via a Qualified Institutional Placement (QIP) or other permissible modes. The funds are primarily earmarked to support the business growth and expansion plans of its material subsidiary, Axis Max Life Insurance Limited. The proposal also requires shareholder approval and involves increasing the company’s Authorised Share Capital.
Key Board Decisions for Capital Infusion
At a Board meeting held on Thursday, March 12, 2026, Max Financial Services Limited sanctioned several strategic proposals aimed at bolstering its capital structure and supporting subsidiary growth. The primary resolution focused on the raising of funds.
Proposed Fundraising Details
The company intends to raise funds by issuing fully paid-up equity shares or other eligible instruments. The maximum aggregate amount targeted for this issuance is ₹2,000 Crores (Indian Rupees Two Thousand Crores only), inclusive of any premium fixed upon the Securities.
- Method of Issuance: The issuance will be done via a Qualified Institutional Placement (QIP) or any other permissible method, adhering to applicable laws.
- Utilization: The primary utilization of these funds is designated to meet the funding requirements of its material subsidiary, Axis Max Life Insurance Limited, for its business growth and expansion plans. The balance will be used for general corporate purposes.
Increase in Authorised Share Capital
To facilitate the proposed issuance, the Board approved a consequential change in the capital structure of the company, requiring shareholder consent:
- Existing Capital: Rs. 70,00,00,000/- (Rupees Seventy Crores) divided into 35,00,00,000 Equity Shares (Face Value of Rs. 2 each).
- Proposed New Capital: Rs. 75,00,00,000/- (Rupees Seventy-Five Crores) divided into 37,50,00,000 Equity Shares (Face Value of Rs. 2 each).
Next Steps and Shareholder Action
The proposal for the issuance of securities and the consequential amendment to the capital clause of the Memorandum of Association is subject to necessary regulatory and statutory approvals. Specifically, the company will seek approval from its shareholders for the issuance via a postal ballot process. A notice regarding this upcoming postal ballot will be submitted to the Stock Exchanges in due course.
Trading Window Update
In compliance with the existing Insider Trading Policy, the trading window for designated persons, including promoters and directors, will re-open 48 hours after this intimation, specifically on Saturday, March 14, 2026.
Source: BSE
