KKR To Acquire 10% Stake In Shriram General Insurance
KKR & Co. has signed a pact to acquire a 9.99% stake in Shriram General Insurance Co.
KKR & Co. has signed a pact to acquire a stake in Shriram General Insurance Co.
The global investment firm will pick up 9.99% in the general insurer, subject to necessary regulatory approvals, according to a company statement.
Founded in 2008, Shriram General is a joint venture between Shriram Capital—the holding company for Shriram Group’s financial services business—and Sanlam Ltd., a pan-African financial services group. “KKR’s investment is expected to position Shriram General for continued growth in India’s fast-growing general insurance industry,” the statement said.
Anil Kumar Aggarwal, managing director and chief executive officer at Shriram General, in the statement said the company “looks to benefit from KKR’s global insurance expertise, as well as significant experience in taking Indian companies to the next level”.
While the statement didn’t reveal the financial details of the deal, Bloomberg in December had reported that KKR was nearing a deal to buy a 10% stake in Shriram General for about Rs 1,800 crore ($237 million). Chennai-based Shriram Group is selling the stake in Shriram General ahead of a potential initial public offering that could take place as soon as 2022, it reported citing people aware of the matter.
KKR’s investment in Shriram General builds on its track record and significant experience in India, including in the financial services sector. Some of its investments in the sector include Housing Development Finance Corp., SBI Life Insurance Co., Max Life Insurance Co., and Five-Star Business Finance Ltd.
Since setting up its Mumbai office in 2009, KKR has made more than 20 investments in India with more than a dozen active portfolio companies today.
Gaurav Trehan, partner and chief executive officer at KKR India, said, “Shriram General has been one of the standout performers in India’s fast-growing general insurance industry and continues to build on its record by developing new capabilities, channels, and products to meet the growing needs of Indian consumers.”
