Shares of Max Financial Services jumped around 12 per cent in early trade following Axis Bank’s announcement that it would raise its stake in the company.
Axis Bank announced that it will raise its stake in Max Life to 16.22 per cent from 9.99 per cent by infusing Rs 1,612 core through a preferential allotment of shares
Shares of Max Financial Services jumped around 12 per cent in early trade following Axis Bank’s announcement that it would raise its stake in the company.
The private lender announced that it will raise its stake in Max Life to 16.22 per cent from 9.99 per cent by infusing Rs 1,612 core through a preferential allotment of shares. However, Axis Bank’s shares opened flat with a negative bias. At 1:40 PM, the stock was trading 7.15 points or 0.76 per cent lower at Rs 942 on the NSE.
Max Financial, the holding company of life insurer Max Life Insurance, opened at Rs 818 per share on the NSE against Wednesday’s closing price of Rs 789.8 per share. The stock further rallied to hit a fresh 52-week high of Rs 886.55 on NSE. At the time of writing, Max Financial's share price was trading 85.30 points or 10.80 per cent higher at Rs 875.25 per share.
In 2021, Axis Bank, along with its entities Axis Securities and Axis Capital, acquired a 12.99 per cent stake in Max Life. Through this new investment, they will own 19.02 per cent of the insurer.
In Q1 FY24, the insurance company reported consolidated revenue of Rs 4,730 crore, up 19 per cent year-on-year. Consolidated net profit grew 48 per cent YoY to Rs 101 crore on the back of higher investment income, the company said.
International broking firm CLSA has issued a Buy rating for Max Financial Services and raised target to Rs 1,025. Jefferies also assigned a Buy rating to the stock, with a target price of Rs 800.