MFSL swaps its stakes with Mitsui Sumitomo Insurance Company in Max Life1 min read . Updated: 09 Dec 2020, 11:44 AM IST
- Insurance Regulatory and Development Authority of India gave its nod to the proposed swap of 20.57% stake in Max Life held by MSI to MFSL in exchange for 21.87% stake in MFSL.
Max Financial Services Limited (MFSL) on Wednesday swapped its 21.87% stake in Max Life Insurance Company Limited (Max Life) with 20.57% stake of Mitsui Sumitomo Insurance Company, the company said.
"MFSL has allotted 7,54,58,088 equity shares of Rs. 2/- each constituting 21.87% of the paid-up share capital to MSI, on a preferential allotment basis," MFSL said in a stock exchange disclosure.
The allotment to the joint venture partner MSI is in consideration for the transfer of equity shares constituting 20.57% of the paid-up share capital of Max Life held by it to MFSL, the company further said.
Following this, the paid-up equity share capital of MFSL increased to ₹69 crore. It will effectively increase MFSL’s stake in Max Life to 93.10%.
Last month, Insurance Regulatory and Development Authority of India gave its nod to the proposed swap of 20.57% stake in Max Life held by MSI to MFSL in exchange for 21.87% stake in MFSL.
Mohit Talwar, MD, MFSL and Vice Chairman, Max Group, said, “We thank Mitsui Sumitomo Insurance for their long-standing partnership. I am sure they will continue to contribute richly to Max Financial through their Board participation."
Welcoming the share swap transaction, MSI, meanwhile, said, “We have had a long and mutually beneficial joint venture with Max. We continue to have a strong conviction in the potential of Max Financial, through its subsidiary Max Life. We believe that the anticipated Max Life-Axis JV will improve the prospects of this high-quality life insurance franchise even further."
MFSL is listed on the National Stock Exchange and Bombay Stock Exchange. Its sole operating subsidiary Max Life is the largest non-bank owned private life insurer in India. Max Life has been at the forefront of the current buoyant phase in the Indian Life Insurance sector.
The Board of MFSL has also appointed MSI’s two nominees - Mr. Hideaki Nomura and Mr. Mitsuru Yasuda as non-executive non-independent directors on the Board of MFSL.