Max Financial Services Ltd (MFSL) has reported a jump of 51 per cent in net profit at Rs 593.27 crore for fiscal ended March 2017. The company had posted a net profit of Rs 393.19 crore in the preceding fiscal ended March 2016. Total revenues of the company from operations rose by 30.2 per cent to Rs 15,227.89 crore in 2016-17 from Rs 11,696.14 crore in the year-ago period, MFSL said in a regulatory filing. Quarterly earning figures were not provided by company.
In an investor presentation, Max Financial said the merger proposal of the company with life insurance companies is expected to be completed by the last quarter of the current fiscal. In a scheme of amalgamation, MFSL is to merge its subsidiary Max Life Insurance Company with itself, followed by a demerger of the life insurance undertaking of the company and then merger of the said undertaking with HDFC Standard Life Insurance Company Ltd.
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The last leg of the complex process will be merger of MFSL–minus the life insurance business–with Max India Ltd.
The company said insurance regulator Irdai has expressed reservations on MFSL merger with life insurance companies. Max Financial said it has represented to Irdai that the structure is fully complaint.
Response from Irdai is awaited after which it will seek approvals from Sebi and CCI, it added. During the fiscal ended March 2017, MFSL acquired over 1.9 equity shares of its subsidiary Max Life Insurance Company (MLIC) from IDFC and Axis Bank, increasing its stake in MLIC to 70.01 per cent from 68.01 per cent.
Being a holding company, Max Financial mainly does business investments and promotes investments through management advisory services to group companies. Total assets of the company as on March 31, 2017 rose to Rs 46,739.33 crore, from Rs 38,146.94 crore year ago. Stock of the company closed 4.17 per cent up at Rs 559.25 on BSE.