Fettle Tone LLP is a special purpose vehicle (SPV) set up by True North Fund; it holds a 5.6 per cent stake in health insurance company
will pick up a 9.9 per cent stake in Fettle Tone LLP, a promoter of Max Bupa Health Insurance
Company, for Rs 90.8 crore to strengthen is insurance business.
Axis, which is privately owned, said in a BSE filing it has signed agreements with Fettle Tone LLP and its partners (on March 13).
Max Bupa Health Insurance
(MBHI) is as a joint venture between private equity group True North and Bupa, a global health insurance
and healthcare company. Fettle Tone LLP is a special purpose vehicle (SPV) set up by True North Fund; it holds a 5.6 per cent stake in health insurance company.
Fettle Tone LLP, incorporated in 2019 as a limited liability partnership, had a turnover of Rs 0.16 crore in March 2020 and its net worth stands at Rs 706 crore.
MBHI Gross Direct Premium rose by a 38.02 per cent (year-on-Year basis) at Rs 1,497.03 crore in February 2021 from Rs 1,084.62 crore in preceding 12 months ended February 2020, according to the Insurance Regulatory and Development Authority of India (IRDAI).
Axis and its subsidiaries plan to pick up a 19 per cent stake in Max Life Insurance.
IRDAI has given nod to Axis entities acquire up to 12 per cent stake in Max Life Insurance.
This paves the way for Axis firms to become a joint venture partner in the life insurance
Axis will acquire nine per cent stake in the life insurance company while Axis Capital and Axis Securities will acquire another 3 per cent in the first leg of the transaction. Furthermore, Axis entities — Axis Capital & Axis Securities — will have the right to acquire another 7 per cent in the life insurance company, something they intend to do in the coming years. Max Financial Services is the holding company of the private sector life insurer Max Life Insurance.