The U.K.-based global healthcare group Bupa will add a 23 per cent stake in Max Bupa Health Insurance for Rs.191 crore. The all cash deal will result in Bupa having 49 per cent stake in the venture — the maximum permissible foreign direct investment in the insurance sector. Max India will own the rest of the equity. The health insurer will now have to apply for insurance regulator and foreign investment promotion board’s approval.
“Bupa’s stake increase is a clear affirmation of the huge growth opportunity for health insurance in India. The cash received from the transaction will support growth aspirations of the Max Group as well as for Max Bupa,” Rahul Khosla, Managing Director, Max India, said.
Max Bupa, which started operations in 2010, is the 7th largest private health insurer in India, with over two million customers. Earlier, this year the government amended the Insurance Act to increase foreign direct investment to the insurance sector to 49 per cent from 26 per cent.
However, the management control of the company has to remain with the Indian promoter.
This is the first such deal in the health insurance space since the law was amended.
