Max Bupa Health Insurance announced on Monday that its foreign parent Bupa has executed agreements to acquire an additional 23 per cent stake in the company.

 Bupa will pay around ₹191 cr to Max India in an all-cash transaction to increase its stake from 26 per cent to 49 per cent. Earlier this year, Bupa had announced its intention to hike its stake in its Indian health insurance subsidiary to 49 per cent following the relaxation of foreign direct investment rules.

The new agreements will come into force after the requisite regulatory clearances have been secured from the Foreign Investment Promotion Board (FIPB) and the Insurance Regulatory and Development Authority of India (IRDAI). After the regulatory approvals, the local parent Max India’s shareholding in Max Bupa will decline to 51 per cent from 74 per cent earlier.

In a statement, Rahul Khosla, MD, Max India Limited, welcomed the development. “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 Max Bupa. I am confident that this renewed vote of confidence by Bupa, coupled with the recent strategic reorientation of the company, will strengthen its position.”

India opportunity David Fletcher, Managing Director of International Development Markets at Bupa, added: “We see enormous opportunity in India to build on the great foundations of the last few years and use our global expertise to take the business to the next level. We are committed to growing an insurance business that not only provides the best quality healthcare funding but that is at the forefront of helping Indian people to live healthier lives.”

Launched in 2010, Max Bupa is the seventh largest private health insurer in India, with a base of over two million customers.

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