Axis Bank along with its subsidiaries Axis Capital and Axis Securities completed the acquisition of 12.99% stake in Max Life Insurance on Tuesday.
The bank and its subsidiaries (together called Axis entities) have together become the co-promoter of the insurance company. The Axis entities have a right to acquire an additional stake of up to 7% in Max Life, subject to regulatory approvals.
"The Board of Max Life recorded the closure of the deal today," the companies said in a statement on Tuesday.
Max Life will now have to recast its board with three nominees from Axis entities.
Axis Bank had first announced its intention to acquire a stake in Max Life in February 2020. The transaction got insurance regulator's approval a year later in February 2021.
"Axis Bank has been a long-term partner to Max Life and together we have contributed to deepening insurance penetration in India over the last decade," said Amitabh Chaudhry, Managing Director & CEO, Axis Bank.
“The conclusion of this transaction is truly a monumental milestone, which will bring added strength to Max Life and help it chart a new growth trajectory," said Analjit Singh, Chairman of Max Group.