Max Financial Services’ Insurance Unit Axis Max Life Approves Roadmap For Listing

Axis Max Life Insurance Ltd. said on Tuesday that its board has approved a roadmap for the company’s public listing, following a directive from the Insurance Regulatory and Development Authority of India.

The insurance company’s board discussed and approved the plan in its meeting on Tuesday, the company’s parent, Max Financial Services Ltd., said in an exchange filing, adding, "The approved roadmap involves merging Max Financial Services, the holding company of Axis Max Life, into Axis Max Life to achieve listed status."

Max Financial Services holds an 80.98% stake in Axis Max Life, the statement said. The company further said that it would initiate the listing process once there is clarity on the applicable regulations governing such a merger and did not provide a timeline.

Besides, the Axis Max Life Insurance Ltd., a material subsidiary of Max Financial Services, has approved a proposal to raise additional capital through the issuance of non-convertible debentures aggregating up to Rs 1,300 crore. The capital will be raised in one or more tranches in the form of subordinated debt instruments via private placement.

“With focused investments and robust execution, we continue to drive sustained growth across all channels. Further, our rebranding to Axis Max Life leverages the combined strength and trust of two leading financial brands, propelling our strategic expansion beyond major metros and Tier 1 cities,” said Prashant Tripathy, CEO and Managing Director of Axis Max Life.

Max Financial Services Ltd. reported a 62.2% year-on-year decline in profit for the third quarter of the current financial year.

The life insurance company posted a net profit of Rs 56.04 crore for the quarter ended December, compared to Rs 148.56 crore in the same period of the previous fiscal year, according to a stock exchange filing.

Total income fell 27.7% year-on-year to Rs 8,927.35 crore in the three months ended December, down from Rs 12,359.19 crore a year earlier.

Shares of Max Financial Services closed 1.61% higher at Rs 1,100.85 per share, compared to a 1.62% advance in the NSE Nifty 50. It has risen 26.36% in the last 12 months.

Nineteen out of the 21 analysts tracking the stock have a 'buy' rating on it, and two suggest a 'hold,' according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 1,420.94, implying an upside of 29.1%.