Max Financial Services soars after IRDAI approves Axis Bank-Max Life capital infusion deal

Max Financial Services Share Price: Max Financial Services' stock soared over five per cent in morning deals on BSE on Wednesday (February 7, 2024) after IRDAI approved the capital infusion
worth Rs 1612 crore by Axis Bank into Max Life. 

The stock of the finance company was trading up by 5.18 per cent, or Rs 47.25, at Rs 958.90 at 10:20 am on Wednesday.

The performance of the stock is good despite the company reporting poor results in the December quarter, where its profit after tax slipped by 32.8 per cent while gross written premium jumped by 16.1 per cent. 

However, market sentiment for the company was positive after the Insurance Regulatory and Development Authority of India's go-ahead for capital infusion deal.

"The company dated August 9, 2023, on capital infusion by Axis Bank into Max Life by the way of issuance of 14,25,79,161 equity shares of Max Life to Axis Bank for an aggregate investment of INR 1612 Crores, which will help Max Life to support its future growth ambitions, to augment its capital position and to improve solvency margins," the company said in a statement.

"In continuance to the abovementioned disclosure, we are pleased to inform that IRDAI, through issuing a letter dated February 6, 2024 to Max Life, has approved the capital infusion by Axis Bank into Max Life, subject to the approval of CCI. it said further."