South African-based insuring company Sanlam Ltd. is all set to purchase 26% in Shriram Group’s Shriram Capital Ltd (SCL). The deal is estimated to be around Rs. 2,000 crore.
As per industry sources, about Rs. 1,200 crore will be in the cash form, and the remaining amount will be in the form of investment in the insurance business.
Shriram Group and Sanlam Ltd. went into partnership five years back to set up Shriram Life Insurance Company Ltd. As per IRDA regulations, 26% stake was acquired by Sanlam. The group also launched a non-life insurance company, Shriram General Insurance Ltd in which Sanlam again has 26% stake.
The SCL is planning to expand the insurance business with this investment and will also be utilized for expanding other finance businesses.
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