The country's fourth-largest private sector lender owns a little over 2 percent of Max Life Insurance.

Shares of Max Financial Services climbed 15% intraday after a media report on 20 February indicated that Axis Bank could buy a 20 % stake in the company.

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The stock touched the new 52-week high of Rs 597.60, up from 2 Max Financial Services' share price climbed 15 % intraday on February 20, when media reports indicated that Axis Bank could buy a 20 % stake in the company.





The stock touched a 52-week high of Rs 597.60, up 22 % in the previous week. It was quoted at Rs 588.70, Rs 72.25, or 13.99 % in 10:12 hours on BSE.





"Axis Bank is set to acquire more than 20 % stake in Max Life Insurance," Economic Times quoted several sources as saying.

The proposed deal aims to build a strategic and long-term relationship with Axis Bank, which contributes more than 54 percent to Max Life's revenue, the report said.





Axis Bank expects to invest more than Rs 2,000 crore in the insurance company.





Max Life Insurance owns more than 2 % of the country's fourth-largest private sector lender in terms of market capitalization.





In addition, CNBC-TV18 reported that Max Financial Services and Max Life Insurance have convened a joint board meeting on 20 February to discuss chairman Analjit Singh's stake in a group company.





Sources told the trade channel that a proposal is likely to be discussed between the boards of the two companies under which Axis Bank is expected to acquire a stake belonging to Singh in Max Financial Services.





Singh holds a 28.31 % stake in Max Financial Services and a 71.54 % stake in the company.





Axis Bank's move to acquire the stake from Singh will help the Max Group chairman take advantage of his mortgage position. The move will help Axis Bank gain indirect entry into the life insurance sector through Max Life Insurance, a subsidiary of Max Financial Services.





As a result, other Max Group stocks were also on buyers' radar. Max Ventures and Max India rallied over 7 % .





2 % in the last 15 days. It was quoted for 1012 hours on BSE with Rs 588.70, Rs 72.25 or 13.99 % .





"Axis Bank is set to acquire more than 20 % stake in Max Life Insurance," Economic Times quoted several sources as saying.





The proposed deal aims to build a strategic and long-term relationship with Axis Bank, which contributes more than 54 percent to Max Life's revenue, the report said.





Axis Bank expects to invest more than Rs 2,000 crore in the insurance company.





The country's fourth largest private sector lender currently owns more than 2 % of Max Life Insurance in terms of market capitalization.





In addition, CNBC-TV18 reports indicated that Max Financial Services and Max Life Insurance have convened a joint board meeting today to discuss Max Group chairman Analjit Singh's stake in a group company.





Sources told the trade channel that a proposal is likely to be discussed between the boards of the two companies under which Axis Bank is expected to acquire a stake in Max Financial Services related to Analjit Singh.





Max Group Chairman Analjit Singh holds a 28.31 % stake in Max Financial Services and a 71.54 % stake in the company.





Axis Bank's move to acquire equity from Elisit Singh will help the chairman of Max Group in the event of its pledge and the move will help Axis Bank gain indirect entry into the life insurance space through Max Life Insurance Milega, a subsidiary of Mexican Services.





As a result, other Max Group shares were also on the buyers' radar. Max Ventures and Max India rallied over 7 % .









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