Analjit Singh-promoted Max India Ltd on Monday said it will sell 23% of its stake in health insurer Max Bupa Health Insurance Co. Ltd to British partner Bupa Plc. for Rs.191 crore.
Once the transaction is complete, Max India’s holding in the insurance firm will fall from 74% to 51%, while Bupa’s stake will rise from 26% to 49%.
The deal, which needs approval from the Foreign Investment Promotion Board and the Insurance Regulatory and Development Authority of India (Irdai), will be the largest in terms of stake size in the general insurance space, after government permitted foreign firms to hold 49% in insurance firms, up from 26% earlier. Max Bupa had first spoken of its partner’s intent to increase stake in January.