The company will now need approval from the IRDA which is expected to take 4-6 weeks. The money pumped by Mitsui Sumitomo for its stake will make it the second largest FDI in the insurance business.
Max will stand to gain pre tax cash flows of 879 crores, which will be used to to strengthen the Group.
The 26 percent stake by Mitsui Sumitomo is the maximum allowed for foreign ownership in Indian life insurance companies.
The deal would represent a further withdrawal from Asia for New York Life, which recently sold businesses in China, Thailand, South Korea and Hong Kong.