The Boards of Directors of Aditya Birla Capital Limited (ABCL) and Aditya Birla Health Insurance Co. Limited (ABHI) approved a proposal for a primary capital infusion of approximately Rs 665 crore in ABHI, from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA). ABHI plans to use this capital to drive its growth in the health insurance market in India.
ABHI is a 51:49 joint venture between ABCL and Momentum Metropolitan Strategic Investments (Pty) Ltd, a wholly owned subsidiary of South African based Momentum Metropolitan Holdings Limited.
The transaction values ABHI at approximately Rs. 6,650 crores. Completion is subject to receipt of statutory and regulatory approvals, including the approval of the Insurance Regulatory and Development Authority of India (IRDAI). Upon the completion of the transaction, ADIA will own a 9.99 per cent stake, ABCL will hold a 45.91 per cent stake and MMH a 44.10 per cent stake, respectively, in ABHI.
