Axis Bank is set to acquire 29 percent stake in Max Life Insurance Co. on Tuesday. The board of Axis Bank has approved the purchase, taking the private sector lender's total stake in the insurer to 30 percent.

Axis Bank, India's fourth-largest private sector lender, already holds under 2 percent stake in Max Life. Post deal, it will become the single-largest shareholder in the insurance firm.

''We wish to inform you that the Board of Directors at its meeting held on Monday, 27th April 2020, has approved entering into an agreement with Max Financial Services Limited (MFSL) to acquire 29 percent stake in Max Life Insurance Company Limited,'' the bank said in an exchange filing.

The Bank will acquire shares from Max Financial Services, which holds 72.5 percent stake in its unlisted insurance arm Max Life, and sign a shareholders’ agreement and a share purchase agreement.

Shares of the company gained Rs 27.2, or 6.37%, to settle  at  Rs 454.50.  The total volume of shares traded  was  1,460,331 at  the BSE (Tuesday).