The Competition Commission of India (CCI) has cleared a stake sale in Magma HDI General Insurance Co. Ltd to Morgan Stanley, the Poonawalla Group, and entities advised or managed by ICICI Venture.Magma HDI had in March announced a ₹525 crore deal in which fresh capital of ₹250 crore was to be issued to private equity funds advised or managed by ICICI Venture private equity fund and to Morgan Stanley private equity fund. The deal also involved a secondary sale of promoter stake worth ₹275 crore to ICICI Venture, Morgan Stanley Private Equity, and Cyza Chem, a Poonawalla Group entity, and to two family offices.The transaction involves acquisition of less than 25% of Magma HDI by India Advantage Fund S4 I and Dynamic India Fund S4 US I on a fully diluted basis, CCI said. The deal also involves acquisition of less than 10% of the share capital of Magma HDI on a fully diluted basis by NTH, an investment holding firm that belongs to a fund managed or controlled by an affiliate of Morgan Stanley.Magma HDI is engaged in the non-life insurance business and offers products across categories such as motor, health, personal accident, home and fire insurance. “Investment by marquee PE investors such as ICICI Venture and Morgan Stanley, along with leading family offices, underwrites the confidence in the company’s business and the quality of the management team. This will support the strong growth trajectory of the company and will set it to be among the leading players in the industry,” Magma HDI had said in March.