Axis Max Life Insurance Ltd (formerly Max Life Insurance Co Ltd), a leading private insurer, has decided to raise ₹389 crore to support its future growth initiatives through a preferential issue of equity shares to Axis Bank.
Accordingly, Axis Max Life will issue 2.51 crore equity shares of face value ₹10 each at a premium of ₹141.90 per share, aggregating to ₹389 crore. The company operates as a joint venture between Axis Bank and Max Financial Services Ltd (MFSL).
Shareholding structure post deal
Upon completion of the transaction, Axis shareholders (Axis Bank, Axis Capital Ltd and Axis Securities Ltd) will collectively hold 19.99% of Axis Max Life’s share capital, while MFSL will retain the remaining 80.01%.
Axis Capital and Axis Securities are not participating in the current offer, and their shareholding will remain unchanged at 1.84% and 0.92%, respectively. Axis Bank’s stake will increase to 17.23% from 16.22%.
Regulatory approvals and rights
As per the agreement, MFSL, Axis shareholders, Max Ventures Investment Holdings Pvt Ltd, Mitsui Sumitomo Insurance Co Ltd and Analjit Singh will have the right to purchase additional equity shares equivalent to 0.98% of the share capital, enabling Axis shareholders to maintain their holding at up to 19.99%.
Axis Bank has received the requisite approval from the Reserve Bank of India for the proposed capital infusion.
Growth track record and focus areas
Over the past decade since inception, Axis Max Life has reported a compounded growth trajectory, with around 15% year-on-year growth in premium and 17% growth in embedded value.
Going forward, the company will continue to focus on long-term priorities such as predictable and sustainable growth, product innovation to drive margins, customer-centricity across the value chain, and increased digitisation for operational efficiency and intelligence.
The proposed capital infusion is expected to strengthen the insurer’s balance sheet and support its next phase of growth in India’s expanding life insurance market.