Max Life Gets Irdai Nod for Rs 1,612 Cr Infusion

New Delhi, Feb 6 (PIT) Max Financial Services, the parent company of Max Life Insurance, on Tuesday said Irdai has approved an infusion of Rs 1,612 crore in the insurance firm.

Last year in August, the company announced a capital infusion by Axis Bank by issuance of 14.25 crore equity shares to help Max Life to support its future growth ambitions, augment its capital position and improve solvency margins.

"In continuance to the above-mentioned disclosure, we are pleased to inform that the Insurance Regulatory and Development Authority of India (IRDAI), through issuing a letter dated February 6, 2024, to Max Life, has approved the capital infusion by Axis Bank into Max Life, subject to the approval of CCI," the insurer said in a filing.

The Pension Fund Regulatory and Development Authority (PFRDA) has already approved the proposed change in the shareholding pattern of Max Life pertaining to the infusion of capital by Axis Bank into Max Life, it added.

Accordingly, the capital infusion of Rs 1,612 crore by Axis Bank into Max Life will be consummated upon approval from the Competition Commission of India (CCI), it added.

Following this, Axis Bank's stake in Max Life would increase to 16.22 per cent and the collective stake of Axis Bank Group to 19.02 per cent.