Last checked at 9 Aug 2023 13:45
AXIS/CO/CS/253/2023-24
August 9, 2023
Dear Sir(s),
Sub: Disclosure under Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
This is with reference to our earlier letters dated April 28, 2020, July 23, 2020, August 24, 2020, October 30, 2020, February 24, 2021, April 6, 2021 and January 10, 2023, informing that Axis Bank Limited ("Axis Bank") and its subsidiaries, i.e., Axis Securities Limited and Axis Capital Limited (together referred to as "Axis Entities") have entered into agreements (including amendments thereto) with Max Financial Services Limited ("Max Financial"), with regard to acquisition of equity stake of Max Life Insurance Company Limited ("Max Life") and matters incidental thereto.
In this regard, we would now like to inform you that the Acquisitions, Divestments and Merger Committee of the Board of Directors of the Bank at their meeting held on August 9, 2023 has approved the proposal for the Axis Bank to infuse Rs. 1,612 crores in Max Life through preferential allotment, resulting in Axis Bank's direct stake in Max Life increasing to 16.22% and the collective stake of Axis Entities increasing to 19.02%.
As communicated vide our letter dated January 10, 2023, the aforesaid acquisition would be done at Fair Market Value using Discounted Cash Flow method. The Bank will now enter into a Share Subscription Agreement with Max Life for proposed acquisition through subscription to the Preferential Issue of 14,25,79,161 fully paid-up equity shares of face value of Rs. 10 each, at a fair market value of Rs. 113.06 per share (arrived at as per extant regulations and including a share premium of Rs. 103.06 per equity share).
The transaction is subject to regulatory approvals, including IRDAI, PFRDA, CCI and any other requisite approval. The Bank has requisite approval from the Reserve Bank of India for the proposed acquisition.
A detailed disclosure as required under SEBI Circular dated July 13, 2023, is attached as Annexure A.
http://www.rns-pdf.londonstockexchange.com/rns/8350I_1-2023-8-9.pdf
The meeting commenced at 5.15 P.M. and concluded at 5.35 P.M.
This is for your information and records.
Thanking you,
Yours Sincerely,
For Axis Bank Limited
Sandeep Poddar
Company Secretary
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