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The Abu Dhabi Investment Authority (ADIA) will invest Rs 655 crore to acquire a 10% stake in the health insurance arm of Aditya Birla Group.
The boards of Aditya Birla Health Insurance (ABHI) and its listed parent company Aditya Birla Capital (ABCL) have approved a proposal to infuse a primary capital of around Rs 6.65 crore into ADIA, which values ​​the company at 6,650 crore, according to an official. 10,000 rupees statement.
ABHI is a joint venture between Aditya Birla Group and South Africa’s Momentum Metropolitan Holdings (MMH). ABCL will hold a 45.91 percent stake in the company and MMH will hold 44.10 percent, following the stake sale, which is subject to approval by insurance regulator Irdai, the company said.
Hamad Shahwan Al Dhaheri, Executive Director, Private Equity at ADIA, said: “With increasing penetration, driven by increased awareness and broader economic growth, we see great potential in the Indian health insurance sector.”
He added that ABHI’s strong management team, health-first product offering and differentiated distribution model are the appeal of the fund.
“ADIA’s investment underscores ABHI’s strong and unique business model and the franchises we have created,” said Vishakha Mulye, ABCL’s newly appointed CEO.
ABHI’s chief executive Mayank Bathwal said the investment would help it expand its “health first” proposition.
Earlier, Aditya Birla Group invested an undisclosed amount in a digital bank in the UAE called Zand.
Shares in ABCL were trading 2.07% higher at Rs 111 per share on the BSE at 1411 hours on Friday, compared with the benchmark index’s gain of 0.24%.
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