Max Financial Services Ltd shares gained for a fifth consecutive session on Monday, totaling gains of over 20% during the period, as investors kept the company on their radar in anticipation of the announcement of its partnership with private lender Axis Bank that was officially done on Thursday.
Max Financial shares hit a high of Rs 594.70 apiece on Monday. At 11:24 am, the stock was trading up 3.8% at Rs 586.60. Axis Bank shares, meanwhile, were down 2.3%.
Axis Bank, Max Financial Services and its subsidiary Max Life Insurance Co. Ltd announced on Thursday that they had signed a confidentiality and exclusivity arrangement to explore the possibility of Axis Bank entering into a long-term strategic partnership with Max Life.
“Max Financial Services and Axis Sank have entered into a confidentiality and exclusivity arrangement to explore a long-term strategic partnership, subject to receipt of applicable regulatory approvals and corporate authorisations, satisfactory completion of due diligence, and execution of definitive documentation,” a filing by Max Financial said.
On Thursday, ahead of the official announcement, a media report had said that Axis Bank, which currently owns a little over 2% of Max Life, is expected to infuse an additional Rs 2,000 crore in the insurance company in order to fund its expansion plan.
At present, Max Financial Services holds a 72.5% stake in Max Life, while Mitsui Sumitomo Insurance and Axis Bank hold 25.5% and 2%, respectively. Interestingly, Axis Bank is Max Life’s largest source of revenue currently, at 54%.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI)
