Material Subsidiary Axis Max Life Allots 68,600 NCDs Raising Rs. 686 Crore on Private Placement

Axis Max Life Insurance, material subsidiary of the company, allotted 68,600 unsecured subordinated NCDs of INR 1,00,000 face value each on private placement, raising INR 686,00,30,000 (including INR 30,000 premium).

Mon 28 Sep 2026

Number of NCDs Allotted

68,600 debentures

Face Value per NCD

INR 1,00,000

Total Amount Raised

INR 686,00,30,000

Tenor

10 years from deemed date of allotment

Call Option

After 5 years and yearly thereafter

What was announced

Max Financial Services disclosed that its material subsidiary, Axis Max Life Insurance Limited (formerly Max Life Insurance Company Limited), has allotted debentures on a private placement basis.

• Number allotted: 68,600 debentures
• Face value each: INR 1,00,000
• Issue size (face value): INR 686,00,00,000
• Total amount to be received: INR 686,00,30,000, including a premium of INR 30,000

The allotment was approved by an Executive Committee of the Board through a resolution passed on September 28, 2026, following the Board approval disclosed on August 13, 2026 for raising up to INR 6,86,00,00,000 through debentures in one or more tranches.

Nature of the instrument

The debentures are unsecured, subordinated, listed, rated, redeemable, taxable, non-cumulative and non-convertible. They are in the nature of subordinated debt, issued under the SEBI NCS Regulations and IRDAI regulations. No charge or security has been created over assets.

Bidding was conducted on the electronic bidding platform (EBP) of NSE under a 'multiple yield allotment basis', and the debentures were issued for cash in dematerialised form to identified investors.

Tenure and repayment

• Tenor: 10 years from the deemed date of allotment
• Call option with the company at the end of 5 years and every year thereafter
• Redemption at par at maturity, subject to exercise of the call option
• Interest is payable annually and charged to the profit and loss account

Interest payments are subject to IRDAI rules. The company is not liable to pay interest for a financial year if such payment is prohibited under IRDAI regulations, and prior IRDAI approval is needed where solvency is below the control level, or where accrual or payment would push solvency below the regulatory requirement, or would result in a net loss or increase a net loss. Non-payment arising from non-receipt of IRDAI approval is not treated as an event of default.

How investors may read this

Subordinated debt of this type is commonly used by insurers to support their capital position. For shareholders of Max Financial Services, this is funding raised at the insurance subsidiary level rather than at the listed parent, and it adds long-dated interest-bearing liabilities at the subsidiary.

The listing application for the 68,600 debentures on NSE is underway, and listing will follow receipt of final listing approval. Items such as delay or default in interest or principal payment are marked as not applicable.

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