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.