Analjit Singh, promoter of Max Financial Services (MFS), has sold a part of his shareholding in MFS in a block deal on Wednesday, netting about ₹350 crore.

About two per cent shareholding in MFS was sold by Singh, who is the founder and Chairman of Max Group, in the block deal. Prior to this transaction, Singh and his controlling entities held 28.3 per cent stake in MFS.

“We confirm that we have sold a minor stake in MFSL earlier today. This is another step towards our previously stated intent to reduce the share pledge and decrease personal debt to negligible level. We had earlier divested some private real estate in UK and also intend to monetize residual stake in Max Healthcare to this purpose. We will continue to manage and operate the Life Insurance business”, a spokesperson of the promoter family told BusinessLine.

The listed Max Financial Services owns a 72.5 per cent stake in Max Life Insurance and Mitsubishi Sumitomo Insurance (MSI) holds 25.5 per cent. MSI has already announced that it will swap its 20.6 per cent stake in Max Life Insurance with a 21.9 per cent stake in MFS.

MFS also plans to purchase MSI’s balance stake in Max Life Insurance.

It may be recalled that Axis Bank had in April this year signed a definitive agreement with MFS to buy 29 per cent stake in Max Life Insurance in an all cash deal. This Axis Bank-MFS deal is still awaiting regulatory nod, sources said.