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Max Financial Services Ltd.

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Max Financial Services Ltd.

Max Financial Services Ltd.  


Key Details :    
CMP (Rs.)   463
52 Week H/L (Rs.) 611/280
Market Cap (Rs.Crs)   12568
Face Value (Rs.)   2.0
TTQ   (in ‘000)   37
Shareholding Pattern (%)
Promoter 28.31
Institutions 59.69
Public 12.10



  • Max Financial Services Limited (MFS), a part of the USD 3.2 bn Max Group, is the holding company for Max Life, India’s largest non-bank, private life insurance company.
  • Max Financial Services owns and actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (stake ~25%), a Japan-headquartered global leader in life insurance.
  • Max Life has an extensive presence across India through its own offices and distribution partners and is the 4th largest private Life Insurance player in the country.


Management :

Name Designation
Analjit Singh Chairman (Non-Executive)
Mohit Talwar Managing Director


 Financials (Consolidated) :

(Rs Mn) FY 15 FY 16 FY 17 FY 18 FY 19 FY 20
Operating Income 149077.3 117098.9 152467.2 163377.4 194982.9 182399.8
EBITDA 7174.4 5311.7 7710.5 5310.7 4840.0 5235
Adjusted Profit 2802.2 2527.2 3949.0 2864.3 2627.0 2687.7
EPS 10.5 9.5 14.8 10.7 9.8 10.0
OPM (%) 4.8 4.5 5.1 3.3 2.6 2.9
NPM (%) 1.9 2.2 2.6 1.8 1.3 1.5
PE (x) 44.1 49.0 31.4 43.5 47.6 46.5
RoE (%) 8.5 12.9 16.9 15.7 12.8 12.5
RoCE (%) 13.3 17.7 23.0 20.4 17.9 15.7


Source : Capitaline

Recent Updates:

Axis Bank and Max Financial Services Deal Background

  • Axis Bank Ltd (Axis Bank) and Max Financial Services Limited (MFS) announced the signing of definitive agreements to become joint venture partners in Max Life Insurance Company Limited (MAXL).
  • Axis Bank will hold 30% stake in Max Life post transaction closure.
  • The development will result in a mutually beneficial and enduring relationship between Axis Bank and Max Life and bring the stability of a long term partnership to India’s fourth largest private life insurance franchise.
  • The joint venture arrangement will significantly improve Max Life’s competitive position vis a vis its competitors, including the other large bank owned private life insurers.


  • Max Financial Services presently holds a 72.5% stake in Max Life and Mitsui Sumitomo Insurance (MSI) owns 25.5% stake. Axis Bank also has a minor stake in the Max life.
  • The aforesaid transaction with Axis Bank follows the ongoing swapping by MSI of 20.6% stake that it holds in Max Life with a 21.9% stake in MFS.
  • MFS also plans to purchase MSI’s balance stake in Max Life.
  • Post the swap transaction, Axis Bank will buy out 29% of MLI from MFS (currently holds ~1% in Max Life).
  • Post completion of the series of transactions, Max Life will become a 70:30 joint-venture between Max Financial Services and Axis Bank.
  • The proposed transactions are subject to approval of requisite corporate and regulatory authorities (including IRDAI, RBI and CCI). Company expects deal to be completed within one year.
  • Valuation of stake will be dependent on the tax adj. BV of MAXL (Dec-19: Rs 56bn, 29% at Rs 16bn) as on transaction date. Axis Bank indicated that they will buy 55.6 crore shares of Max Life for a total consideration (estimated) of Rs. 1,592 crore, but the final amount will depend on exact pricing at the time of transaction. (*Only guided).

Mitsui Sumitomo swap indicative process:

  • The construct of the transaction is such that Mitsui Sumitomo (MSI) will first swap part of its shareholding in MAXL for a shareholding in the holdco, i.e., Max Financial Services (MFS).
  • As a result of this swap, MFS will end up owning ~94% stake in MLI and MSI will still hold ~5% in MLI which, at a later stage, would be bought out by MFS.
  • Post the swap transaction, Axis Bank will buy out 29% of MLI from MFS (currently holds 1% in Max Life). Finally, MAXL would be reverse merged with MFS, effectively becoming a listed entity.
  • The proposed transaction structure awaits regulatory approvals.

Share Price Trend:

Year Open (Rs) High (Rs) Low (Rs) Close (Rs)
2010 222 245 132.9 147.45
2011 148.45 214.75 137 148.25
2012 146.25 266.7 140.45 241.9
2013 244 264.9 150.5 215.2
2014 217 442.7 177.6 394.9
2015 397 585.75 381.1 496.1
2016 509.2 627.4 303 548.5
2017 547.5 683.2 513 591.15
2018 589.3 604.2 343.95 445.25
2019 449 544.9 361.1 534.7
2020 535.8 611.05 279.75 476.65


Max Group

2016 – Demerger/split of Max India Ltd into three entities –

  1. Max Financial Service Ltd with the insurance business,
  2. Max India Ltd with the healthcare and allied businesses and
  3. Max-Ventures and Industries Ltd with specialty packaging film business.
  • Max Financial Services (MFS)
    • After the split, Max India was renamed as ‘Max Financial Services Ltd (MFS) and solely focus on the group’s flagship life insurance activity, through 72.1% (then in 2016) in Max Life, making it the first Indian listed company solely focused on life insurance.


  • Max India Ltd
    • The second vertical “Max India Ltd” (MIL) continued to manage investment in the high‐potential health and allied business comprised of Max Healthcare, Max Bupa, Antara Senior Living and supported by a corporate management service team.


  • Max Ventures & Industries Ltd
    • The third vertical will be named Max-Ventures and Industries Ltd (MVIL), which will house the investment in the group’s manufacturing subsidiary Max Specialty Films ‐ one of the leaders in the specialty packaging films busines



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