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Shares of Axis Bank gained over 4 per cent in morning trade on Thursday after the Insurance Regulatory and Development Authority of India (IRDAI) gave Axis Bank and two of its subsidiaries approval for acquiring stake in Max Life Insurance.
The stocks were trading 4.17 per cent higher at Rs 780 on the BSE. On the NSE, the bank's shares rose 4.12 per cent at Rs 780.30 apiece.
Max Financial Services Ltd (MFSL) on Wednesday said IRDAI has given its approval for the acquisition of up to 12 per cent stake in Max Life Insurance by Axis Bank and its subsidiaries -- Axis Capital and Axis Securities.
In line with the proposed transaction, Axis entities have the right to acquire up to 19 per cent stake in Max Life; of which, Axis Bank proposes to acquire up to 9 per cent. Axis Capital and Axis Securities together propose to acquire up to 3 per cent of the share capital of Max Life in the first leg of the transaction, according to a statement.
Approval from the insurance regulator was an integral step in the joint venture transaction, which was first announced in April 2020, the statement said.
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