Max Financial Services shares soar over 9 pc

Shares of Max Financial Services soared to touch its 52-week high on Thursday amid reports that Axis Bank may acquire more than 20 percent stake in its subsidiary Max Life Insurance. The stock hit 52-week high at Rs 597.60 during the day before giving up some gains to settle 9.41 percent higher at Rs 565.05 on the BSE.

On the NSE, the scrip ended the day with 9.02 percent gains at Rs 563.35. The spurt in volume was more than 10.81 times during the day on the BSE.

More than 2.6 crore shares were traded on the NSE, while 6.55 lakh units were exchanged on the BSE during the day. The stock has been on a gaining spree for last four consecutive sessions. It has gained nearly 15 percent since Monday.

According to media reports, Axis Bank is likely to acquire more than 20 percent stake in Max Life Insurance through fresh issue of equity. The BSE had sought a clarification from Max Financial Services as well as Axis Bank regarding the report.

Post-market hours, Max Financial Services said that it has entered into a 'confidentiality and exclusivity arrangement to explore a long-term strategic partnership' with Axis Bank. "The strategic interest of Axis Bank in Max Life will lead to the much-awaited permanence and allow both companies to work towards an enduring future for policyholders and other stakeholders. We also believe that the potential transaction will provide a fillip to the life insurance sector overall," Max Group founder and Chairman Analjit Singh said.

Max Financial Services currently holds 72.5 percent stake in Max Life, while Mitsui Sumitomo Insurance and Axis Bank hold 25.5 percent and 2 percent stake, respectively. Meanwhile, shares of Axis Bank settled 0.37 percent higher at Rs 743.95 on the BSE.