India's Axis Bank raises stake in Max Life Insurance for $4.3 million

A man enters a branch of Axis Bank in New Delhi

BENGALURU (Reuters) - India's Axis Bank acquired additional equity shares of Max Life Insurance Company, a unit of Max Financial Services, for 3.36 billion rupees ($4.32 million), the private lender said on Wednesday.

The bank's board of directors approved the proposal to acquire Max Life shares, raising Axis entities' total holding in the insurance firm to 19.99% from 19.02%.

Axis entities include the bank as well as investment solutions provider Axis Securities and financial services provider Axis Capital.

Shares of the bank, India's fifth largest by market capitalisation, jumped as much as 2.2% after the news. The stock was among the top gainers on the Nifty 50 index.

Axis entities' had raised their holding in Max Life to 19.02% from 12.99% earlier in April, originally acquiring a stake in the company in 2020.

Max Financial Services, Max Life Insurance's holding company, engages in investment business and provides management advisory services.

($1 = 83.4125 Indian rupees)

(Reporting by Dimpal Gulwani; Editing by Janane Venkatraman)