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).
IND vs PAK: Operation Sindoor 2.0... India destroyed the camp of the Pakistani team; Indian players attacked like Brahmos.
India's 'Operation Sindoor' is going on, and once again the Pakistani team has lost badly on the cricket field. Amidst the boycott campaign going on in the country, the Indian cricket team completely
51,552 people attend India-Bangladesh match
Melbourne, March 19 (IANS) As many as 51,552 people thronged the Melbourne Cricket Ground (MCG) here to watch India beat Bangladesh in the cricket World Cup quarter-final on
25 lakh new voters in Jammu and Kashmir: Army personnel and migrants will cast their votes, Abdullah said – BJP is importing votes for victory
After the abrogation of Article 370, elections can be held in Jammu and Kashmir for the first time in November-December. The ground for dispute is also ready before the election. For the first time,
BJP Social Media Row: Politics intensifies over controversial video post, Assam BJP's social media co-ordinator removed
The Assam BJP has removed the co-ordinator of its social media team. The party took this strict action after posting a controversial video of Chief Minister Himanta Biswa Sarma. The video has now been
It's Kiwis bowling vs Windies batting in quarters (Preview)
Wellington, March 20 (IANS) A much-anticipated pulsating battle between New Zealand's bowlers and two-time champions West Indies' big hitters may well decide the fourth quarter-final of the
Shreyas can play in place of Virat: Ishaan can also get a chance, to know India's possible playing 11 against New Zealand
After 15 years, Team India had a chance to win the T20 World Cup, which went out of hand after losing to England in the semi-finals. Now the Indian team is going to start the three-match T20 series
Indias Got Latent: Samay Raina is broken by the 'India's Got Latent' controversy, comedian's friend said- he is scared...
Amid the 'India's Got Latent' controversy, YouTuber Shwetaabh Gangwar revealed that he recently spoke to his friend and comedian Samay Raina and realized that he was broken and depressed. He also
4 crore children who could not take the vaccine are at risk of measles, cases increased in India too; WHO told how the situation worsened
In many states of India, children are falling prey to measles disease. The World Health Organization (WHO) and the United States Centers for Disease Control and Prevention (CDS) attribute this to a
Saudi-China did not give a new loan to PAK: both countries together had promised $13 billion, IMF also stopped the installment
Two alleged close friends of Pakistan seem to be turning away from it in difficult times. Pakistan currently has foreign reserves of only $6.7 billion. Due to this, imports can be done only for three
Srinivasan hands over World Cup trophy to Australia
Melbourne, March 29 (IANS) Former BCCI president and current ICC chairman N. Srinivasan handed over the cricket World Cup trophy to captain Michael Clarke on Sunday after Australia defeated New
