InvestorQ : Why was Max Financial locked in upper circuit on 25 Feb trading?
ishika Banerjee made post

Why was Max Financial locked in upper circuit on 25 Feb trading?

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2 months ago
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Max Financial Services was locked in 10% upper circuit after the IRDA approved the acquisition of 12% stake in Max Life Insurance by Axis Bank along with its subsidiaries; Axis Capital and Axis Securities. The Axis Entities will have the right to acquire up to 19% stake in Max Life in the first leg of the transaction. They also have the right to acquire additional stake up to 7% in Max Life, which could happen over the next few years.

Max Life is the fourth largest private life insurer in India. Max Life and Axis Bank have shared a very successful business relationship for last 10 years servicing over 2 million customers. The relationship has, till date, generated total premium of Rs.40,000 crore. Max Financial had FY20 revenues of Rs.18,242 crore. On 25 February, the shares of Max Life and the shares of Axis Bank were trading with healthy gains.

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