Capital Small Finance Bank Gets Equity From Max Life Insurance For Minority Stake
Private equity and venture capital-backed Capital Small Finance Bank, India’s first small finance bank, has secured an equity investment from Max Life Insurance Company Limited for a minority equity stake in the lender at a valuation of over Rs 1,600 crore.
Max Life Insurance Company Ltd has been allotted a total of 10.58 lakh equity shares for a total consideration of Rs 49.5 crore. Each equity share has a face value of Rs 10 and an additional premium of Rs 458 per share, as per the statement by the bank. “As a result of this allotment, Max Life Insurance Company Ltd now holds a 2.99% stake in the post-issue equity shareholding,” the statement said.
The post-money valuation of Capital SFB was determined to be Rs 1,652 crore, reflecting the bank’s estimated value after considering the infusion of funds or investments, the statement added. The strategic investment by Max Life Insurance is projected to increase the Capital Adequacy Ratio (CAR) of Capital SFB by more than 1%, raising it to 20.77%, maintaining the regulatory compliance of 15% and its financial strength.
Capital Small Finance Bank gets equity from Max Life Insurance for minority stake (vccircle.com)
