Axis Bank will pick up a 9.9 per cent stake in Fettle Tone LLP, a promoter entity of Max Bupa Health Insurance. The transaction would include the contribution of Rs 90.8 crore by Axis Bank Ltd, in cash.

A special purpose vehicle set up by True North Fund VI LLP, Fettle Tone LLP is currently a promoter of Max Bupa Health Insurance Company Ltd and holds 55.6 per cent of its total share capital.

“Axis Bank Ltd has entered into definitive agreements with Fettle Tone LLP and the other partners of Fettle Tone LLP on 13th March 2021 in connection with Axis Bank Ltd’s proposed acquisition of 9.90 per cent of the aggregate partnership interest of Fettle Tone LLP pursuant to a contribution by Axis Bank Ltd in Fettle Tone LLP’s partnership capital,” the bank said in a regulatory filing.

With this acquisition, Axis Bank aims to strengthen its position in the insurance sector, pursuant to its investment in Fettle Tone LLP, it said.

The filing said, “the definitive agreements in connection with the proposed acquisition have been executed by Axis Bank on March 13, 2021, and the acquisition is proposed to be completed on or before March 17, 2021.”

Fettle Tone LLP is currently a promoter of Max Bupa Health Insurance Company Limited (MBHI) and holds 55.6 per cent of the total share capital of MBHI. MBHI is a standalone health insurance company registered with the Insurance Regulatory and Development Authority of India, it said.