Analjit Singh’s promoter entity has sold 2 percent stake in Max Financial Services to a leading marquee investor in a block deal, sources said.

A Singapore based leading sovereign fund was a buyer in the block deal and the promoters have raised approximately around Rs 700 crore, according to sources.

This money will be used to reduce the pledged shares of the promoter entity as well as for reducing the debt at the personal level.

The sponsor spokesperson of the Analjit Singh family group confirmed the deal in an official email to CNBC-TV18.

“We confirm that we have sold a minor stake in MFSL earlier today to a highly pedigreed investor. We have seen immense interest in the investor community for MFSL’s underlying life insurance business,” the spokesperson said in the email.

“We will utilise the funds to reduce the pledge level of MFSL shares in line with our previously stated intent to reduce the share pledge and decrease personal debt to a negligible level. We see huge growth potential in the life insurance sector and believe that Max Life is well poised to benefit from it. We will to continue actively manage and operate the Life Insurance business,” it added.

Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.

(Edited by : Ankit Gohel)

First Published:Jun 17, 2021 2:07 PM IST