As per filing to the exchanges on 07.02.2020, Religare Enterprise Limited, the promoter of Religare Health Insurance, has entered into the definitive agreements on February 06, 2020, with M/s. Kedaara Capital Fund II LLP and M/s. Trishikhar Ventures LLP (jointly referred to as ‘Kedaara’ ) for;
a) Sale of part of the investment in Religare Health Insurance Company Limited (‘RHICL’), a subsidiary company for a consideration aggregating to Rs 200 crores, and
b) Primary capital infusion of Rs 200 crores in RHICL by Kedaara.
This is good news for the shareholders of Religare Health Insurance that Kedaara group entity, Trishikhar Ventures LLP, a leading private equity investment firm is investing in its health insurance subsidiary – Religare Health Insurance Company Limited (“RHICL”).
Commenting on the transaction, Mr. Anuj Gulati, MD & CEO, Religare Health Insurance, said – “This transaction will enable us to increase our investment in technology, distribution and service capability. I would like to convey my sincerest appreciation to our current shareholders, the board of directors, customers, distribution partners and employees for reposing their faith in us over the years. I also warmly welcome our incoming shareholders and thank them for the belief that they have vested in us. We remain committed to building an institution that will be relevant beyond 100 years.”
Pursuant to the above transactions, the Company would have divested part of its investment constituting 6.761% of RHICL. Post consummation of the transaction, the Company will hold a 76.18% stake in RHICL.
This deal will support the growth of the health insurance business and will enable REL to become debt free after the completion of this transaction and the divestment of its lending business to the TCG Group. This will, in turn, help the company to emerge as a strong financial services company.
The deal will need approval from IRDA, as well.
This deal is likely to be completed in the FY20-21.