Magma HDI to raise ₹525 crore from ICICI Venture and Morgan Stanley PE Asia1 min read . Updated: 16 Mar 2021, 09:22 PM IST
- Magma HDI General Insurance's profit after tax tripled to ₹22.3 crore for the nine months ended December 2020
Mumbai : Magma HDI General Insurance Limited (Magma HDI) on Tuesday said that it is raising ₹525 crore from ICICI Venture and Morgan Stanley Private Equity Asia along with Adar Poonawala's Cyza Chem Pvt Ltd.
Of the ₹525 crore, ₹250 crore is fresh capital to meet the needs of the expanding distribution capabilities of the company and ₹275 crore is a secondary sale to enable Magma Fincorp Limited and its group companies to comply with the Reserve Bank of India’s guidelines for ownership of stake in insurance companies.
The deal is subject to shareholder and regulatory approvals, including the Insurance Regulatory and Development Authority (IRDAI) and the Competition Commission of India (CCI).
“We are delighted to continue our support as shareholders of Magma HDI and I see huge potential in the growth of Magma HDI which is a young and fast growing company. We are confident that it can reach its full potential in next few years," said Adar Poonawalla, Chief Executive Officer, Serum Institute of India.
Magma HDI General Insurance's profit after tax tripled to ₹22.3 crore for the nine months ended December 2020, on a Gross Written Premium (GWP) of ₹911.2 crore compared to a net profit of ₹7.3 crore on a GWP of ₹948.5 crore, same period last year.
Magma HDI General Insurance is a joint venture between Magma Fincorp Limited and HDI Global SE, Germany.