Aditya Birla Health Insurance is a 51:49 joint venture between Aditya Birla Capital and Momentum Metropolitan Strategic Investments (Pty) Ltd, a wholly-owned subsidiary of South African-based Momentum Metropolitan Holdings.
Following the development, the Aditya Birla Capital scrip rose 1.24 per cent to Rs 110.10 on BSE.
In a filing to BSE, Aditya Birla Capital said the company board of directors approved a proposal for a primary capital infusion of approximately Rs 665 crore in the health insurance company, from a wholly owned subsidiary of the Abu Dhabi Investment Authority.
“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 per cent stake, ABCL will hold a 45.91 per cent stake and MMH a 44.10 per cent stake, respectively, in ABHI. ABHI plans to use this capital to drive its growth in the health insurance market in India,” it said.
Hamad Shahwan Al Dhaheri, Executive Director of the Private Equities Department at ADIA, said his company see significant potential in India’s health insurance sector as penetration levels increase, driven by higher awareness and broader economic growth.
“Aditya Birla Health Insurance has a strong management team, a wellness-first product offering and a differentiated distribution model. We look forward to partnering with Aditya Birla Capital and Momentum Metropolitan Holdings to support the next phase of ABHI’s growth.”
CEO of Aditya Birla Health Insurance Mayank Bathwal said: This partnership with ADIA strengthens our resolve to further expand the company’s ‘Health-First’ proposition, as we
our customers to lead a healthy life. We remain committed to this promise and have reimagined our business model and customer engagement accordingly, by creating differentiated products, a digital health ecosystem and a large distribution presence across the country. ABHI remains committed to grow the reach and impact of the nascent health insurance market in India.
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