While this transaction simplifies corporate structure paving way for potential M&A or folding up of MAXL into MAXF and is value accretive for minority shareholders, management was unable to clearly spell out its end game. This adds an additional layer of uncertainty to the one that already exists- renewability of partnership with Axis Bank. We rate MAXF a BUY with TP of Rs 589 (MAXL: FY20E EV + 21.9x FY21E VNB). We have increased our holding company discount to 30% (vs. 15%), and continue with a 22% discount on VNB for Axis Bank deal, and a 10x multiple to annual leakage at the holding co level. Key risks include lower growth, higher cost over-runs, and supply overhang as a result of promoter pledges. Despite an increasing share of NPAR savings (15% share, +3.7x YoY), and change in assumption which helped margins expand 160bps YoY, VNB margins disappointed at just 19.6% (+150bps YoY).