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Axis Bank Purchases 4.99% Stake

Partnerships

On February 29, 2016, Axis Ban bought 9,57,48,762 shares of face value of Rs. 10/- each, or 4.99% equity stake, in Max Life Insurance Company Limited from Max Financial Services Limited, previously known as Max India Limited, and Mitsui Sumitomo Insurance Company Limited for a total cash consideration at par (Rs. 10/- per share) of Rs. 95.75 crores.

Of this, Axis Bank has purchased 7,65,60,635 shares of face value of Rs. 10/- each, or 3.99% equity stake in MLIC, from MFSL for a collective cash deliberation at par (Rs. 10/- per share) of Rs. 76.56 crores and 1,91,88,127 shares of face value of Rs. 10/- each, or 1% equity stake in MLIC, from MSI for an aggregate cash consideration at par (Rs. 10/- per share) of Rs. 19.19 crores, post receipt of necessary regulatory approvals. Subsequent to this transaction. Axis Bank’s equity stake in MLIC has increased to 5.99%.

MLIC, a joint-venture between MFSL and MSI, was built-in on July 11, 2000 and is mainly engaged in the business of life insurance in India. As of March 31, 2015, MLIC is one of the most important life insurers in India with a paid-up capital of Rs. 1,919 crores. The gross premium collected by the MLIC was Rs.8,172 crores in the financial year ended March 31, 2015, Rs. 7,279 crores in the financial year ended March 31, 2014 and Rs. 6,639 crores in the financial year ended March 31, 2013.

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