Axis Bank Ltd.

Axis Bank has purchased 9,57,48,762 shares of face value of Rs 10 each, or 4.99% equity stake, in Max Life Insurance Company (MLIC) from Max Financial Services ( MFSL), formerly known as Max India, and Mitsui Sumitomo Insurance Company (MSI) for a total cash consideration at par (Rs 10 per share) of Rs 95.75 crore.

Of this, the bank has acquired 7,65,60,635 shares of face value of Rs 10 each, or 3.99% equity stake in MLIC, from MFSL for an aggregate cash consideration at par (Rs 10 per share) of Rs 76.56 crore and 1,91,88,127 shares of face value of Rs 10 each, or 1% equity stake in MLIC, from MSI for an aggregate cash consideration at par (Rs 10 per share) of Rs 19.19 crore, post receipt of requisite regulatory approvals. Consequent to this transaction, the bank’s equity stake in MLIC has increased to 5.99%.

MLIC, a joint-venture between MFSL and MSI, was incorporated on July 11, 2000 and is primarily engaged in the business of life insurance in India. As of March 31, 2015, MLIC is one of the leading life insurers in India with a paid-up capital of Rs 1,919 crore. The gross premium collected by the MLIC was Rs 8,172 crore in financial year ended March 31, 2015, Rs 7,279 crore in financial year ended March 31, 2014 and Rs 6,639 crore in financial year ended March 31, 2013.