Max Financial Services gets approval from government for Share Swap Transaction

The transaction involves issue and allotment of 7,54,58,088 equity shares of Max Financial Services to Mitsui Sumitomo Insurance on a preferential allotment basis.

November 19, 2020 11:25 IST India Infoline News Service

Max Financial Services Limited has received approval from Department of Economic Affairs, Ministry of Finance, on November 18, 2020 approving the Share Swap Transaction. The company will proceed to consummate the Share Swap Transaction once it has also received the approval from IRDAI.

The share swap transaction involves issue and allotment of 7,54,58,088 equity shares of Rs2/- each at a price of Rs565.11 per equity share amounting to 21.87% of the paid up share capital of Max Financial Services Limited (MFSL), to Mitsui Sumitomo Insurance Company (MSI), on a preferential allotment basis in consideration for the transfer of equity shares constituting 20.57% of the paid up share capital of Max Life Insurance Company Limited held the by MSI to MFSL.

At around 11.29 am, Max Financial Services Ltd was trading at Rs622.10 per piece up by Rs2.9 or 0.47% from its previous closing of Rs619.20 per piece on the BSE.

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