Max India said that it would sell 23 per cent stake in its health insurance company Max Bupa to its foreign partner Bupa for Rs 191 crore.

"Bupa will pay around Rs 191 cr to Max India in an all cash transaction, to increase its stake in Max Bupa from 26 per cent to 49 per cent," Max India said in a filing to the Bombay Stock Exchange.

Bupa, it said, has executed agreements to acquire an additional 23 per cent stake in Max Bupa, one of India's leading standalone health insurers.

The UK health care group was the first foreign insurer to announce its intent to increase its stake to 49 per cent in its Indian health insurance subsidiary after the government relaxed FDI participation rules for insurance companies.

"Since that announcement in January 2015, Bupa and Max India have been working to align their JV agreements with the Insurance Laws (Amendment) Bill 2015 for Indian-owned and controlled businesses," the statement said.

The new agreements will come into force after the requisite regulatory clearances have been secured from the Foreign Investment Promotion Board (FIPB) and the Insurance Regulatory and Development Authority of India (IRDAI).

Launched in 2010, Max Bupa is the seventh largest private health insurer in India. It has more than two million customers across India.

Its local parent Max India is one of India's leading multi-business corporates and currently owns 74 per cent of Max Bupa. Its foreign parent Bupa is a UK-headquartered global healthcare group, which holds 26% stake in the company.

After the deal, Max India's stake in the venture will come down to 51 per cent.

Commenting on the development, Max India Ltd, Managing Director, Rahul Khosla, said, "Bupa's stake increase is a clear affirmation of the huge growth opportunity for health insurance in India. The cash received from the transaction will support growth aspirations of the Max Group as well as for Max Bupa."

Max India also has partnerships with Japan's Mitsui Sumitomo for its Life Insurance business and South Africa- based Life Healthcare for its healthcare business.

Meanwhile, shares of Max India were trading at Rs 553 apiece, almost unchanged from the previous close. BSE.

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