Axis Bank, India’s fourth-largest private sector lender in terms of market capitalisation, is set to acquire more than 20 per cent stake in Max Life Insurance through fresh issue of equity, multiple sources told ET. The money will go toward funding Max Life’s expansion plan.Max Group and Axis Bank didn’t respond to queries.The deal differs from Max founder Analjit Singh’s original plan of a complete exit from the listed holding company, Max Financial Services . The Max-Axis Bank transaction is likely to alter the valuation of Max Financial Services. The contours of the deal will be finalised by the boards of Max Financial and Max Life, scheduled to meet on Thursday.The Axis Bank deal is being negotiated after Sunil Kant Munjal’s Hero Corporate Services didn’t complete a plan to acquire a stake in Max Financial Services, sources said. Munjal had entered into negotiations with US private equity buyout group Bain Capital to participate in the deal.The listed Max Financial owns about 70 per cent of Max Life, the country’s largest nonbank private life insurer.

Source: Economic Times February 20, 2020 02:48 UTC