The fundraising will involve issuing fully paid-up equity shares of face value ₹2 each or other equity-based securities in one or more tranches, subject to required regulatory and statutory approvals.
The company said the proposed capital raise will primarily be used to meet the funding requirements of its material subsidiary, Axis Max Life Insurance Ltd, to support its business growth and expansion plans. The remaining proceeds will be used for general corporate purposes.
Also Read: Max Financial explores merger with Axis Max Life to enable listing
The board also approved an increase in the company’s authorised share capital from ₹70 crore to ₹75 crore. The authorised share capital will rise from 35 crore equity shares of face value ₹2 each to 37.5 crore equity shares of face value ₹2 each. The change will require approval from shareholders through a postal ballot and other necessary regulatory approvals.
The company said details related to the issuance, including pricing and other terms, will be determined in accordance with applicable regulations.
Third Quarter Results
Max Financial Services reported a steep 96% year-on-year decline in net profit at ₹4.1 crore for Q2 FY26, compared to ₹113 crore in the same quarter last year. The drop was largely due to lower earnings from its life insurance arm, Axis Max Life.
Net interest income (NII) grew 13.9% YoY to ₹131 crore from ₹115 crore, even as the life insurance segment revenue fell to ₹9,790.7 crore from ₹13,370.5 crore a year ago. The segment’s profit also declined sharply to ₹23.7 crore from ₹170.8 crore.
Also Read: Max Financial Services Block Deal: 16 lakh shares worth ₹270 crore change hands
Shares of Max Financial Services Ltd ended at ₹1,698.00, down by ₹27.25, or 1.58%, on the BSE.
