ADIA to invest Rs 665 cr in Aditya Birla Health Insurance

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”). Aditya Birla Health Insurance is a 51:49 joint venture between Aditya Birla Capital Limited and Momentum Metropolitan Strategic Investments (Pty) Ltd, a wholly owned subsidiary of South African based Momentum Metropolitan Holdings Limited (together “MMH”).

ADIA to invest Rs 665 cr in Aditya Birla Health Insurance

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% stake, ABCL will hold a 45.91% stake and MMH a 44.10% stake, respectively, in ABHI.

ABHI plans to use this capital to drive its growth in the health insurance market in India. With its differentiated Health-First model, ABHI is the fastest growing health insurance company in the health insurance space, in India.

Commenting on the transaction, Ms. Vishakha Mulye, Chief Executive Officer of ABCL said, “In recent times health has become a key concern for all. With its differentiated Health – First model, ABHI is well positioned to address this concern, while also protecting health through insurance. An investment from ADIA underscores the strong and unique business model of ABHI and the franchise we have created.”