Axis Bank buys 4.99% stake in Max Life Insurance

Axis Bank has bought a 4.99% stake in Max Life Insurance for RS 95.75 crore ($14m). The bank now owns a 5.99% stake; it bought 3.99% from Max Financial Services and 1% from Mitsui Sumitomo Insurance Company.

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Shares of Axis Bank were up over 3% at Rs 388 on the Bombay Stock Exchange after the private sector bank said that it has acquired nearly 5% stake in Max Life Insurance Company Ltd (MLIC).The Bank has purchased 9,57,48,762 shares of face value Rs 10/- each or 4.99% equity stake in MLIC from Max Financial Services Ltd formerly known as Max India Ltd, and Mitsui Sumitomo Insurance Company Ltd for a total cash consideration at par of Rs 95.75 crore, the release said.Post the acquisition, Axis Bank's equity stake in MLIC has increased to 5.99%, the release added.The stock opened at Rs 380 and touched a high of Rs 390. At 12:40pm, over 6.96 million shares were traded on both the stock exchanges.