Religare Enterprises Ltd (REL) on Sunday announced it will sell its entire 80 per cent stake in Religare Health Insurance to a consortium of investors led by private equity fund True North Managers for an estimated Rs 1,040 crore.
"The company has entered into definitive agreements with a consortium of investors led by True North Managers, an India based private equity fund (formerly known as India Value Fund Advisors), to divest its entire stake in Religare Health Insurance Company Ltd (RHI)," Religare Enterprises said in a stock exchange filing.
"This transaction values Religare Health Insurance at Rs 1,300 crore and Religare Enterprises currently has 80 per cent shareholding on a fully diluted basis in the company," it said.
"The consortium of investors includes Metaffinity Pvt Ltd (owned and controlled by India Value Fund), Shree Nirman Ltd (a Puneet Dalmia Group Company) and Faering Capital India Evolving Fund II," it added.
Religare Enterprises said the transaction marks the single largest investment in a standalone health insurance company in India.
Commenting on the development, Religare Enterprises Group CEO Maninder Singh said: "This sale is a continuation of REL's strategy to consolidate and focus on its core businesses. We are confident that RHI will continue on its high growth trajectory under the new ownership."
Since commercial launch in July 2012, RHI has emerged as a leading standalone health insurer in India, the statement said
The company has reported gross written premium of Rs 503 crore for the year ended March 31, 2016.
--IANS
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