Prism Johnson share price locked in upper circuit on stake divestment in insurance arm

Prism Johnson share price was locked in 10 upper circuit in the morning trade on July 6 after the board approved divestment of the entire stake in the insurance arm.

The board approved divestment of its entire holding of 51 percent of the paid-up equity share capital in its subsidiary, Raheja QBE General Insurance Company, to QORQL Private Limited for an aggregate consideration of Rs 289.68 crore, a company release said.

QORQL Limited is a technology company with a majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm.

There were pending buy orders of 15,914 shares, with no sellers available.

The said divestment is subject to approval by shareholders and other entities.

The consideration to be received by the company for the divestment is subject to certain adjustments that may be carried out between the date of execution of the definitive agreement and closure of the sale and other customary terms for a sale of such nature.

The divestment will result in the termination of the company’s joint-venture with Australia’s QBE in the general insurance business in India and post the divestment, RQBE will also cease to be a subsidiary of the company.

The company has agreed to acquire 35,00,000 equity shares at a price of Rs 37 each aggregating to Rs 12.95 crore, constituting 35 percent in the total paid-up equity share capital of Sanskar Ceramics Private Limited.

The company presently holds 15 percent of the paid-up equity share capital in Sanskar.