Religare Enterprises Ltd. has agreed to divest its 80% stake in Religare Health Insurance Co. Ltd. to a consortium led by True North Managers LLP for about 10.40 billion Indian rupees.
The Indian bank on April 9 entered into a definitive agreement with a consortium led by True North Managers, formerly known as India Value Fund Advisors, to sell its entire stake in its health insurance arm, according to a same-day bourse filing. The consortium comprises Metaffinity Pvt. Ltd., Shree Nirman Ltd., Faering Capital India Evolving Fund II and Gaurav Dalmia.
Religare Health Insurance is valued at 13.00 billion rupees. Religare Enterprises currently owns 80% shares in the health insurer on a fully diluted basis.
The transaction, subject to regulatory approval, is expected to be completed in the second half.
Religare Enterprises CEO Maninder Singh said the stake sale is a continuation of the bank's strategy to "consolidate and focus on its core businesses."
Union Bank of India and Corporation Bank each holds a 5% stake in Religare Health Insurance, the Press Trust of India reported separately the same day.
Metaffinity is owned and controlled by India Value Fund V LLP. Shree Nirman is a company of PuneetDalmia Group.
As of April 7, US$1 was equivalent to 64.26 Indian rupees.