Cholamandalam MS General Insurance Company Limited, a joint venture between city-based Murugappa Group and Mitsui Sumitomo Insurance Group of Japan, has brought in additional funds to the tune of Rs. 50.05 crore.
This was facilitated through a rights issue. The rights issue was done at a premium of Rs.50 per share of the face value of Rs. 10 each.
While the Murugappa Group holds 76 per cent stake in the venture, the Japanese partner has 24 per cent. Following the fund infusion, the capital base of the company has gone from Rs.284 crore to Rs.292 crore. The net worth of the company, which was Rs.325.7 crore in March 2012, too, has increased consequently by Rs.50 crore to Rs.375.7 crore.
According to S.S. Gopalarathnam, Managing Director, Chola MS, the fresh funds would primarily be used to expand business. “We’ve grown our business by nearly 40 per cent last year. This additional capital infused in our business will be utilised for our business growth and expansion. We plan to get close to a GWP (gross written premium) of Rs.2,000 crore for the current year,’’ he added. Chola MS has achieved a gross written premium (GWP) of Rs.400 crore during the April-June 2012 period, registering a growth of around 25 per cent over the same period last year.