Karnataka Bank to sell 8.26% stake in Universal Sompo to Dabur Invest Corp, Sompo Japan

14 May, 2018 8:36 AM

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Karnataka Bank to sell 8.26% stake in Universal Sompo to Dabur Invest Corp, Sompo Japan

Private sector lender Karnataka Bank will sell 8.26 percent stake in Universal Sompo General Insurance to Dabur Investment Corporation and Sompo Japan. This transaction is awaiting approval from Insurance Regulatory and Development Authority of India (IRDAI), according to a statement by the insurer.

Once this transfer is completed, Karnataka Bank's stake in the general insurance company will drop to 6 percent from 14.26 percent at present. Sompo Japan's stake will increase to 34.61 percent from 28.42 percent while that of Dabur Investment Corporation will go up to 12.81 percent from 10.74 percent.

The insurance company is a joint venture between Indian Overseas Bank, Karnataka Bank, Allahabad Bank and Dabur Investment Corporation, with Sompo Japan as the foreign partner. Indian Overseas Bank holds 18.06 percent stake while Allahabad Bank holds 28.52 percent stake.

ON Singh, chairman, Universal Sompo, said that the insurance company infused additional capital of Rs 100 crore at Fair Market Value of Rs 55. The Right Issue of Rs 100 crore was subscribed only by Sompo Japan Nippokoa Insurance Inc and Dabur Investment Corporation.

For FY18, the net profit rose to Rs 296.55 crore as against Rs.48.98 crore in the year ago period. for last F.Y. 2016-17.

Source: moneycontrol.com

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