According to reports from CNBC TV18 and ET Now, Max Financial Services Ltd (MFSL) announced on Thursday (March 12) that its board has approved raising up to ₹2,000 crore through a qualified institutional placement (QIP) or other permitted modes. 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 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, with remaining proceeds allocated for general corporate purposes. As reported by ET Now, the proceeds will be used primarily to support the capital requirements of its material subsidiary, Axis Max Life Insurance, as it looks to fund business growth and expansion.
As reported by CNBC TV18 and ET Now, the board also approved an increase in the company's authorized share capital from ₹70 crore to ₹75 crore. The authorized 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. This change will require approval from shareholders through a postal ballot and other necessary regulatory approvals, with details related to the issuance, including pricing and other terms, to be determined in accordance with applicable regulations. The proposed fundraising is expected to provide greater financial flexibility to support the life insurance business amid a competitive operating environment.
According to CNBC TV18 and ET Now, shares of Max Financial Services settled 1.37% lower on Thursday at ₹1,701.80 and continued to trade lower on Friday, declining 0.60% to ₹1,684. However, the stock has gained nearly 2% so far this year, indicating positive investor sentiment despite recent declines. The stock has delivered mixed returns across timeframes, declining 0.91% over the past week and 7.61% over the last month, broadly in line with the weakness seen in the NIFTY Midcap 50. On a year-to-date basis, Max Financial has marginally edged higher with a 0.72% gain, significantly outperforming the benchmark index which is down 9.69% over the same period. Over the longer term, the stock's performance has been notably strong, gaining 60.19% over one year and 160.48% over three years, compared with the NIFTY Midcap 50's 14.89% and 85.24% rises respectively.
According to CNBC TV18, 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.
As reported by CNBC TV18 and ET Now, the company will seek shareholder approval for the QIP proposal through a postal ballot process, with a notice regarding this upcoming postal ballot to be submitted to the Stock Exchanges in due course. In compliance with the existing Insider Trading Policy, the trading window for designated persons, including promoters and directors, will re-open 48 hours after this intimation, specifically on Saturday, March 14, 2026. The proposal for the issuance of securities and the consequential amendment to the capital clause of the Memorandum of Association is subject to necessary regulatory and statutory approvals.
