Tycoon Piramal, TPG Weighing Exit From Shriram General, Sources Say

(Bloomberg) -- Billionaire Ajay Piramal and TPG Inc. are considering selling their stakes in Shriram General Insurance Holdings Co., according to people familiar with the matter.

Piramal and TPG are jointly working with an adviser on divesting a combined 30% stake in the holding company of Shriram General Insurance Ltd., said the people, who asked not to be identified as the information is private. Shriram General Insurance Holdings could be valued at more than $2 billion in a transaction, the people said.

India is seeing more insurance company transactions, driven by the government's move to increase foreign investment in the sector, as well as increased demand for medical and life insurance products after the pandemic. Kotak Mahindra Bank Ltd, backed by billionaire Uday Kotak, and Nuva Bupa Health Insurance Company, are separately considering selling minority stakes in their general insurance business, Bloomberg News had reported.

Considerations are at an early stage and details may still change, the people said. Representatives for Piramal, Shriram General Insurance and TPG declined to comment. 

Shriram General Insurance Holdings was created to hold the namesake insurer when the unlisted Shriram Capital was merged with two other listed companies of the Shriram Group last year. Shriram Capital is the largest shareholder of Shriram General Insurance Holdings, with a 63.88% stake. Piramal owns about 20%, while TPG has a roughly 9.5% holdings. An employee's trust holds the remainder.

Shriram General Insurance Ltd., the operating entity, was founded in 2012 as a joint venture between Shriram Capital and South Africa's Sanlam Ltd., according to its website. KKR & Co. bought a 9.9% stake at the operating level last year.

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