Wednesday, July 27, 2005
ING Vysya Life Insurance Co Ltd. (ING Vysya Life) one the leading private sector brands in India in the insurance segment has announced its strategic tie-up with Exide Industries Ltd. Exide Industries Ltd. is all set to become a major shareholder and partner of ING Life Insurance Co. Ltd. as the business continues to expand its market share and premium income across India. According to the agreement Exide will acquire the 49.13 per cent stake held by GMR Industries Ltd. (GMR) and an additional 0.87% through its subscription to a concurrent capital call, resulting in Exide achieving a 50% interest in the company. The proposed transaction is yet to get the go ahead of Insurance Regulatory and Development Authority (IRDA). Exide is all set to purchase GMR's 49.13 per cent for Rs. 203.2 crores. A simultaneous capital infusion will raise a further Rs. 50 crores of which Exide will invest Rs. 28.40 crores. The total capitalisation of the brand following the latest capital call will increase to Rs. 440 crores from Rs. 390 crores. After the capital call and relevant regulatory approvals, ING Group will continue to hold its 26 per cent holding, the maximum stake currently allowed under FDI regulations, Gujarat Ambuja Cements Ltd. 14.87 per cent* and Enam 9.13 per cent.