Religare Health Insurance company (RHICL) has so far raised Rs 567.31 crore from a domestic private equity firm Kedaara. The Religare arm announced completion of investment by the home-grown private equity fund that includes primary capital infusion and purchase of 6.39% stake.
The transaction got approval from the Insurance Regulatory and Development Authority of India (IRDAI) on 16 April. The total investment made by Kedaara to acquire shares of RHICL comprises of primary capital infusion of Rs 300 crore and Rs 267.31 crore for the purchase of RHICL shares from existing shareholders, including purchase of 6.39% stake from the Company against a consideration of Rs 200 crore.
Following these transactions, the shareholding of the Company in RHICL now stands at 72.02% on a paid up capital basis. The development comes as Religare, which has been stung by controversies surrounding its erstwhile promoters, Malvinder and Shivinder Singh, has been making efforts to raise capital to repay the outstanding loans of Religare Enterprises.
With the latest divestment of stake, the firm has used ₹153 crore toward the payment of the full and final settlement consideration to Axis Bank Ltd, making it external debt-free.
RHICL is a customer focused company with strong fundamentals. This equity infusion will bolster the confidence of its shareholders in the competitive strength and sound business strategy of Religare. The capital infusion will help continue with its investments in making RHICL a future-enabled organisation, committed to ensure the best customer experience.
Religare group’s health insurance business has been growing at a compound annual growth rate (CAGR) of 50% in the last three years and the insurer may continue growing at this pace.
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