Religare to exit Religare Health Insurance for Rs 1,040 cr

PE firm True North will buy Religare's entire 80% stake in RHI

Religare Enterprises will sell its entire 80 per cent stake in Religare Health Insurance to a consortium of investors led by private equity fund True North Managers for an estimated Rs 1,040 crore.

"The company has entered into definitive agreements with a consortium of investors led by True North Managers, an India based private equity fund, to divest its entire stake in Religare Health Insurance Company Ltd (RHI)," Religare Enterprises Ltd (REL) said in a BSE filing today.

"This transaction values Religare Health Insurance at Rs 1,300 crore and Religare Enterprises currently has 80 per cent shareholding on a fully diluted basis in the company," it said further.

Union Bank of India and Corporation Bank also hold 5 per cent stake each in RHI.

The consortium of buyers includes domestic investors such as Gaurav Dalmia and Faering Capital.

Religare Enterprises said the transaction marks the single largest investment in a standalone health insurance company in India.

Commenting on the deal, Religare Enterprises Group CEO Maninder Singh said: "This sale is a continuation of REL's strategy to consolidate and focus on its core businesses. We are confident that RHI will continue on its high growth trajectory under the new ownership."

Religare Health Insurance reported gross written premium of Rs 503 crore for the year ended March 31, 2016.

J.P. Morgan acted as exclusive financial advisor to Religare Enterprises on this transaction.