BusinessWire India
Mumbai (Maharashtra)/New Delhi [India], August 23: Cyril Amarchand Mangaldas advised Axis Bank Limited (Axis Bank) on infusion of Rs 1612 crore into Max Life Insurance Company Limited (Max Life) by way of subscription to shares of Max Life.
The General Corporate Practice of Cyril Amarchand Mangaldas advised Axis Bank Limited on the transaction. The transaction team was led by Indranath Bishnu, Partner and Pranjita Barman, Partner; with support from Anirud Sudarsan R, Principal Associate and Shravan Belsare, Associate.
As part of the transaction, Axis Bank has agreed to infuse Rs 1,612 crore in Max Life by subscribing to shares on a preferential basis. This will result in Axis Bank’s direct stake increasing to 16.22 per cent in the life insurer. The collective stake of Axis Entities i.e. Axis Bank Limited, Axis Capital Limited and Axis Securities Limited will increase to 19.02 per cent in Max Life.
Axis Bank has the requisite approval from the Reserve Bank of India (RBI) for the proposed acquisition. Additionally, the transaction requires consent from other regulators, including IRDAI, PFRDA, and CCI (if applicable). The Axis Entities, had in 2021, collectively acquired a 12.99 per cent stake in Max Life. Axis Bank had the right to acquire an additional stake of up to 7 per cent in the insurer in one or more tranches.
The Transaction was signed on 9th August 2023 and closing will happen roughly 4-6 months from the signing date.
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