Chennai, March 9 (IANS) City-based Sundaram Finance Ltd is awaiting approval from the insurance regulator for completing a 26 percent stake purchase from Britan's RSA Group for Rs.450 crore in its general insurance joint venture, said a top official.
Sundaram Finance has already secured permission from the Reserve Bank of India (RBI) to hold more than 50 percent stake in the general insurance venture for three years.
"We have applied to IRDAI (Insurance Regulatory and Development Authority of India) for sanction to acquire 26 percent stake from RSA Group in Royal Sundaram Alliance Insurance. The sanction is awaited," Sundaram Finance managing director T.T. Srinivasaraghavan told IANS here on Monday.
Only after IRDAI's nod would the company decide on renaming the company to reflect the revised stake-holding pattern, he said.
To a query whether the new name would be Sundaram General Insurance, he said it was not possible to say anything on that now.
He said Sundaram Finance had got the permission from RBI to hold more than 50 percent stake in the insurance outfit prior to the public announcement of stake-change.
As per RBI regulations, Non-Banking Financial Companies cannot hold more than 50 percent stake in insurance ventures.
Sundaram Finance holds 49.90 percent in the Royal Sundaram Alliance, a general insurance company.
Following the acquisition, Sundaram Finance's holding in the Royal Sundaram Alliance would go up to 75.90 percent.
The rest will be held by the associates of Sundaram Finance.
Questioned about the change in management in the general insurance company and the continuation of Ajay Bimbhet as managing director, Srinivasaraghavan said there was time for Sundaram Finance board to decide on those issues.
According to sources, Bhimbet's term is coming to an end next month.
Bhimbet has also applied to RBI for a licence to float a small finance bank with some partners.
What is sure is that the insurance company's board composition would undergo a change as RSA nominees would not be there after the stake acquisition.
Last month, Sundaram Finance announced its decision to acquire 26 percent stake held by Britain's RSA Group in Royal Sundaram Alliance for Rs.450 crore.
The overall enterprise value for the Rs.1,437-crore premium general insurer works out to around Rs.1,731 crore.
In its statement, RSA Group said it expects to receive cash consideration of approximately 46 million euros ($52.4 million), and the transaction is expected to result in a gain on sale of approximately 16 million euros ($18.2 million).
PM Modi in Varanasi: PM Modi will present 43 projects worth 1775 crores to Varanasi today, will talk to children
Prime Minister Narendra Modi will come to Varanasi on Thursday to lay the foundation stone of the new education policy as well as to give a gift to the changing Banaras. In a four-and-a-half-hour
200 Halla Ho Review: Amol Palekar and Rinku Rajguru win hearts in the fight for justice
200 Halla Ho is the fourth consecutive film in the last ten days, which is inspired by a true incident or a person's life. News is rapidly turning into cinema. Movies are descending from the romantic
India-China Ties: Chinese envoy Sun Weidong said- India-China relations affect the whole world
Chinese Ambassador to India Sun Weidong said that China-India relations not only have significance for the two countries but also have a very deep impact on the region and the world. The ambassador
Mood Indigo: Cultural Fest of IIT Bombay will start on December 27, more than 240 programs will be held over four days
IIT Bombay's Mood Indigo: Asia's largest college-based cultural event Mood Indigo is going to be organized at IIT Bombay. IIT Bombay's cultural fest Mood Indigo is going to start on December 27, 2022.
Maharashtra: Uddhav resigns from the post of CM without facing the House, Fadnavis can claim to form government today
Maharashtra Chief Minister Uddhav Thackeray, who was reduced to a minority by the rebellion of Shiv Sena MLAs, resigned on Wednesday night. Governor Bhagat Singh Koshyari had instructed Thackeray late
Team India's stunning victory: Beating West Indies by 68 runs in the first T20, Karthik, who scored 41 runs in 19 balls, became the man of the match
Team India won the first T20 match against West Indies by 68 runs. Chasing the target of 191 runs, the West Indies team could score only 122 runs in 20 overs for the loss of 8 wickets. With this win,
Consumer Affairs: Screws on e-commerce companies misleading by fake reviews, officials summoned today
The government is preparing to crack down on e-commerce companies that mislead customers by giving fake reviews. The Consumer Affairs Ministry summoned the officials of the companies on Friday. The
Government urged to take action on high air fares
New Delhi, March 11 (IANS) Rajya Sabha members on Wednesday expressed concern over high air fares and urged the government to take action.Raising the issue during zero hour, Congress leader Rajeev
After the lockdown: Schools will start in Jharkhand from June 1, not all children will come together
Ranchi: The state government schools that will be opened after the lockdown have changed. At the same time, the academic session will also be short, which will run from 15 June 2020 to 31 March 2021.
Cow Hug Day: Union Home Minister Giriraj Singh said - Countrymen should celebrate 'Cow Hug Day' on February 14, not Valentine's Day
Valentine's Day is the day of love. This day is very special for lovers. Couples spend time together with each other on this day. In most countries of the world including India, Valentine's Day is no