(Single largest investment ever in the history of health insurance industry in India)
New Delhi/Mumbai, April 9, 2017 : Religare Enterprises Limited (“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). The consortium includes domestic investors such as Mr. Gaurav Dalmia and Faering Capital. This transaction values RHI at INR 1,300 crores and REL currently has c.80% shareholding on a fully diluted basis in RHI. The transaction marks the single largest investment in a standalone health insurance company in India. The transaction is subject to necessary regulatory approvals.
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 crores for the year ended March 31, 2016.
Commenting on the transaction Vikram Nirula, Partner of True North said, “We have been closely evaluating the health insurance space and have been impressed by the quality of RHI’s management team and business. We believe that RHI would be an excellent platform for building an enduring health insurance franchise in India.”
Vishal Nevatia, Managing Partner of True North said, “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.”
Mr. Maninder Singh, Group CEO, Religare Enterprises Ltd. 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”
Mr. Anuj Gulati, CEO & MD, Religare Health Insurance Limited said, “We shall continue to deliver best in class health insurance products and services to our customers and partners, and remain committed to our core objective of – ‘building an institution that is relevant even beyond a hundred years’. We sincerely appreciate the faith reposed in us over the years by our founding promoters and are equally thankful for the belief that the new shareholders have vested in us.”
About Religare Enterprises Limited
Religare Enterprises Limited (REL) is the holding company for one of India’s leading diversified financial services groups. REL offers an integrated suite of financial services through its underlying subsidiaries and operating entities, including loans to SMEs, Affordable Housing Finance, Health Insurance and Capital Markets. REL is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India.
As a group, Religare caters to almost every segment of the market from mass retail to affluent, HNIs, UHNIs, mid-size corporates, SMEs to large corporates and institutions. With over 7,000 employees, the group has a presence across more than 1,450 locations pan India.