The country's fourth-largest private sector lender owns a little over 2 percent of Max Life Insurance.
Shares of Max
Financial Services climbed 15% intraday after a media report on 20
February indicated that Axis Bank could buy a 20% stake in the company.
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The stock touched the new 52-week high of Rs 597.60, up from 2 Max Financial
Services' share price climbed 15% intraday on February 20, when media
reports indicated that Axis Bank could buy a 20% stake in the company.
The stock touched a
52-week high of Rs 597.60, up 22% in the previous week. It was quoted at
Rs 588.70, Rs 72.25, or 13.99% in 10:12 hours on BSE.
"Axis Bank is set
to acquire more than 20% stake in Max Life Insurance," Economic
Times quoted several sources as saying.
The proposed deal aims
to build a strategic and long-term relationship with Axis Bank, which
contributes more than 54 percent to Max Life's revenue, the report said.
Axis Bank expects to
invest more than Rs 2,000 crore in the insurance company.
Max Life Insurance
owns more than 2% of the country's fourth-largest private sector lender
in terms of market capitalization.
In addition, CNBC-TV18
reported that Max Financial Services and Max Life Insurance have convened a
joint board meeting on 20 February to discuss chairman Analjit Singh's stake in
a group company.
Sources told the trade
channel that a proposal is likely to be discussed between the boards of the two
companies under which Axis Bank is expected to acquire a stake belonging to
Singh in Max Financial Services.
Singh holds a 28.31% stake in Max Financial Services and a 71.54 % stake in the
company.
Axis Bank's move to
acquire the stake from Singh will help the Max Group chairman take advantage of
his mortgage position. The move will help Axis Bank gain indirect entry into
the life insurance sector through Max Life Insurance, a subsidiary of Max
Financial Services.
As a result, other Max
Group stocks were also on buyers' radar. Max Ventures and Max India rallied
over 7%.
2% in the last
15 days. It was quoted for 1012 hours on BSE with Rs 588.70, Rs 72.25 or 13.99%.
"Axis Bank is set
to acquire more than 20% stake in Max Life Insurance," Economic
Times quoted several sources as saying.
The proposed deal aims
to build a strategic and long-term relationship with Axis Bank, which
contributes more than 54 percent to Max Life's revenue, the report said.
Axis Bank expects to
invest more than Rs 2,000 crore in the insurance company.
The country's fourth
largest private sector lender currently owns more than 2% of Max Life
Insurance in terms of market capitalization.
In addition, CNBC-TV18
reports indicated that Max Financial Services and Max Life Insurance have
convened a joint board meeting today to discuss Max Group chairman Analjit
Singh's stake in a group company.
Sources told the trade
channel that a proposal is likely to be discussed between the boards of the two
companies under which Axis Bank is expected to acquire a stake in Max Financial
Services related to Analjit Singh.
Max Group Chairman
Analjit Singh holds a 28.31% stake in Max Financial Services and a 71.54% stake in the company.
Axis Bank's move to
acquire equity from Elisit Singh will help the chairman of Max Group in the event
of its pledge and the move will help Axis Bank gain indirect entry into the
life insurance space through Max Life Insurance Milega, a subsidiary of Mexican
Services.
As a result, other Max
Group shares were also on the buyers' radar. Max Ventures and Max India rallied
over 7%.
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