U.S.-based Liberty Mutual Insurance Group has announced the on-boarding of Enam Securities and DP Jindal Group as the new Indian promoters in its insurance joint venture in place of its former promoter, Videocon Industries Limited.
Videocon Industries said on Tuesday that it sold its entire stake in its joint venture with the Liberty to Diamond Deal Trade Ltd., a DP Jindal group company, and Enam Securities Pvt. Ltd.
Enam is a privately-owned and managed firm that makes long-term investments in listed companies. It also backs entrepreneurs building valuable private companies. The D.P. Jindal Group business conglomerate has a huge presence in seamless and ERW steel pipes and tubes.
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Videocon held 51.32% stake in the insurance joint venture.
Post the sale, Diamond Deal Trade Ltd. will hold 26% and Enam Securites 25.32% in the insurance joint venture.
"All the necessary regulatory approvals for the said sale were already received. Post the said divestment, the company ceases to be the Indian promoter of Liberty Videocon," Videocon said in a filing the stock exchanges.
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Videocon, however, has not disclosed the sale consideration.
“The new partnership will expand and fortify the company’s position as one of the fastest growing general insurance companies in India and its capability to deliver high quality products and services across general insurance category,” said a release from Liberty Mutual Insurance.
The joint venture had obtained necessary regulatory approvals for re-branding in the wake of ownership re-jig. And, it would soon apply to change its name to Liberty General Insurance Limited with the Register of Companies, said a release
Liberty, the foreign promoter headquartered in Boston, Massachusetts, said it would maintain its shareholding in the joint venture.
“Liberty Mutual is committed to the Indian market and the India growth story,” the release said.
“We are delighted to welcome Enam Securities and DP Jindal Group to Liberty General Insurance,” said Roopam Asthana, CEO & Whole Time Director of the Liberty Mutual joint venture company in India. “This joint venture brings together three promoter organizations whose values are based on a client-first approach to business. In this time of change in the marketplace, it also reiterates our commitment to bring new and fresh experiences to our customers. With a strong capital base and strategic alignment among promoters in a fast-growing general insurance environment, we are advantageously positioned to fulfill the insurance needs of Indian consumers,” he added.
The joint venture has a paid-up capital of ₹1,084 crore, one of the highest for any general insurance company in India.
Liberty has participated in the Indian insurance joint venture through Liberty Citystate Holdings PTE Ltd.