For Quick Alerts
For Daily Alerts

Paytm To Enter General Insurance Business With Raheja QBE's Acquisition

By Staff

On Monday, Paytm (owned by One 97 Communications Ltd) in a statement said that the company, along with its founder Vijay Shekhar Sharma, will acquire Mumbai-based private sector general insurance company Raheja QBE.

"Raheja QBE is owned 51 percent by Prism Johnson and 49 percent by QBE Australia. Paytm is set to acquire both stakes and would own 100 percent of the company," the statement said.

The company, however, did not disclose the financial details of the transactions.

Paytm To Enter General Insurance Business With Raheja QBE's Acquisition

The acquisition is subject to customary conditions, including approval from the Insurance Regulatory and Development Authority of India (IRDAI), the statement added.

Meanwhile, Prism Johnson Ltd, formerly Prism Cement Ltd, in a separate statement said its board has approved selling its entire 51 percent stake in its general insurance joint venture Raheja QBE General Insurance Company Ltd (RQBE) to Paytm and Vijay Shekhar Sharma for about Rs 290 crore.

In a regulatory filing Prism Johnson said its board has approved divestment of 51 percent of the paid-up equity share capital in RQBE, a material subsidiary, to QORQL Pvt Ltd for an aggregate consideration of Rs 289.68 crore.

QORQL Pvt Ltd, is a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm.

"Its strong management team will help us accelerate our journey of taking insurance to the large population of India with the aim to create a tech-driven, multi-channel general insurance company with innovative and affordable insurance products," said Amit Nayyar, President at Paytm.

Prism Johnson said the consideration to be received by the company for the divestment is subject to certain adjustments which may be carried out between the date of execution of definitive agreement and closure of the sale, and other customary terms for a sale of such nature.

The divestment will result in the termination of the company's joint-venture with Australia's QBE in the general insurance business in India. Post the Divestment, RQBE will also cease to be a subsidiary of the company, Prism Johnson added.

Read more about: paytm
Story first published: Monday, July 6, 2020, 12:50 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more