Max Financial Services subsidiary Axis Max Life Insurance Limited has successfully raised INR 800.125 crore through the allotment of debentures, marking a significant move in its capital-raising initiatives.

Debenture Allotment Details

The company allotted 80,000 debentures with a face value of INR 1,00,000 each to identified investors through a private placement. The total amount raised includes a premium of INR 12.5 lakh over the issue size of INR 800 crore face value.

Key Features of the Debentures

• Coupon Rate: 7.95% per annum
• Tenure: 10 years, maturing on September 24, 2035
• Type: Unsecured, subordinated, listed, rated, redeemable, and non-cumulative
• Listing: To be listed on the National Stock Exchange of India Limited upon final approval

Capital Raising Initiative

This allotment is part of Axis Max Life's broader capital raising strategy. It follows a previous allotment of 50,000 debentures worth INR 500 crore in February, completing the company's approved initiative to raise INR 1,300 crore.

Bidding Process and Allotment

The bidding for the issue was conducted under a 'multiple yield allotment basis' through the electronic bidding platform of NSE. The Executive Committee appointed by the Board of Directors of Axis Max Life passed the resolution for the allotment on September 24, 2025.

Regulatory Compliance

The debenture issuance complies with various regulatory requirements, including:

• SEBI (Issue and Listing of Non-Convertible Securities) Regulations, 2021
• IRDAI (Registration, Capital Structure, Transfer of Shares and Amalgamation of Insurers) Regulations, 2024

Call Option

The debentures are subject to call options, allowing the company to redeem them at the end of 5 years and every year thereafter.

Impact and Outlook

This successful debenture allotment strengthens Axis Max Life Insurance's capital position, potentially supporting its growth and operational strategies in the competitive insurance sector. The strong investor interest, as evidenced by the premium raised, suggests confidence in the company's financial health and future prospects.

Max Financial Services Limited (MFSL) has announced a significant development in the insurance sector that could potentially boost affordability and reduce the protection gap in India. The company disclosed that the Goods and Services Tax (GST) Council has approved an exemption from GST for individual life insurance policies, set to take effect from September 22, 2025.

Impact on Axis Max Life Insurance

MFSL expects this regulatory change to have a minimal impact on its material subsidiary, Axis Max Life Insurance Limited. According to the company's disclosure, the effect on Axis Max Life's embedded value is anticipated to be less than 1.00%.

Potential Benefits for Consumers

The GST exemption is expected to bring several advantages to the insurance landscape:

1. Improved Affordability: Max Financial Services believes that this change will make insurance products more accessible to consumers, particularly in the pure protection business segment.

2. Reduction in Protection Gap: By making life insurance policies more affordable, the company anticipates a decrease in the protection gap within the country.

Preparation for Transition

In light of this upcoming change, Max Financial Services has stated that it is actively working on preparing its systems and processes to ensure a smooth transition when the exemption takes effect.

Official Disclosure

The company made this announcement in an official disclosure to the stock exchanges on September 5, 2025, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Piyush Soni, Company Secretary & Compliance Officer of Max Financial Services Limited, signed the disclosure, emphasizing the company's commitment to maintaining information symmetry for all stakeholders.

This development in the insurance sector could potentially reshape the landscape of life insurance in India, making it more accessible to a broader segment of the population while having a minimal impact on the financial metrics of insurance providers like Axis Max Life.