Max Financial to raise money from KKR Capital, others for insurance M&A deals

In a bid to help unit Max Life Insurance Company Ltd pursue an acquisition opportunity, Max Financial Services Ltd has approved a plan to raise funds from KKR Capital Markets India Pvt. Ltd, TPG Global LLC, and Standard Chartered Bank.

Without specifying the deal amount the company said, the amount will be within the limits approved by the board earlier and will be finalized once the acquisition opportunity materializes.

TPG Global generally provides equity financing while Standard Chartered Bank and KKR Capital may arrange or provide debt financing.

Billionaire Analjit Singh-led Max Financial has been exploring fundraising plans to finance M&A deals for the past couple of months. On 21 March, the company had told the exchanges its board approved a plan to borrow Rs 5,000 crore to finance acquisition opportunities by the insurance unit.

Max Life has been trying to engineer M&As for more than a year. Last year, the Max group scrapped a planned merger of Max Life with HDFC Life Insurance Company Ltd because of regulatory hurdles.