True North to acquire Religare Health Insurance at a valuation of Rs 1300 crore

True North to acquire Religare Health Insurance at a valuation of Rs 1300 crore

Religare Enterprises (REL) has entered into a definitive agreement with a consortium of investors led by True North (formerly India Value Fund) to buy out its entire stake in Religare Health Insurance Company Limited (RHI) at a valuation of Rs 1300 crore. The transaction marks the single largest investment in a standalone health insurance company in India.
 
The consortium includes domestic investors including Gaurav Dalmia and Faering Capital. REL currently has around 80% shareholding on a fully diluted basis in RHI. The transaction is subject to necessary regulatory approvals, a release said, adding that JP Morgan acted as the exclusive financial advisor to REL on this transaction.
 
Since commercial launch in July 2012, RHI has reported steady progress and emerged as a leading standalone health insurer in India, The business reported a gross written premium (GWP) of Rs 503 crore for the year ended March 31, 2016.
 
"We are delighted to add RHI to True North's portfolio of financial services businesses and look forward to supporting the RHI management team in building the most admired health insurance business in India," True North managing partner Vishal Nevatia said.
 
"We are confident that RHI will continue on its high growth trajectory under the new ownership. This sale is a continuation of REL's strategy to consolidate and focus on its core businesses," REL group chief executive officer Maninder Singh said.
 

Narendra Modi or Rahul Gandhi? Who will win the battle royale of the Lok Sabha Elections 2019


Get real-time news updates, views and analysis on Lok Sabha Elections 2019 on Deccanherald.com/news/lok-sabha-elections-2019 


Like us on Facebook or follow us on Twitter and Instagram with #DHPoliticalTheatre for live updates on the Indian general elections 2019.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry