Axis Bank to acquire 9.90% stake in Fettle Tone LLP

Private lender Axis Bank on Sunday announced that it will acquire a 9.90 per cent stake in Fettle Tone LLP, a promoter of Max Bupa Health Insurance Company, for Rs 90.8 crore to strengthen is insurance business.

Axis Bank in a regulatory filing said, "The bank has entered into definitive agreements with Fettle Tone and the other partners of Fettle Tone LLP on March 13, 2021, in connection with Axis Bank's proposed acquisition of 9.90 per cent of the aggregate partnership interest of Fettle Tone LLP pursuant to a contribution of Rs 90.8 crore by Axis Bank in Fettle Tone LLP's partnership capital."

Fettle Tone LLP is a special purpose vehicle (SPV) set up by True North Fund VI LLP under the IRDAI (Investment by Private Equity Funds in Indian Insurance Companies) Guidelines, 2017. Currently, Fettle Time is a promoter of Max Bupa Health Insurance Company Ltd (MHBI) and holds 55.6 per cent of its total share capital. MHBI is a standalone health insurance company registered with the Insurance Regulatory and Development Authority of India.

The bank in the filing said, the acquisition is proposed to be completed on or before March 17, 2021.

Fettle Tone LLP was incorporated on May 23, 2019, as a limited liability partnership under the Limited Liability Partnership Act, 2008. Its net worth as of March 31, 2020, was Rs 607 crore and the turnover for the financial year ended March 31, 2020, was Rs 0.16 crore.

This transaction strengthens the Axis Bank's position in the insurance sector, pursuant to its investment in Fettle Tone LLP.