Abu Dhabi Investment Authority To Buy 9.99 Per Cent Stake In Aditya Birla Health Insurance At Rs 6,650 Crore Valuation

The Abu Dhabi Investment Authority (ADIA) will be investing Rs 665 crore in the Aditya Birla Health Insurance (ABHI) to acquire 9.99 per cent stake in the company at a valuation of around Rs 6,650 crore.

The ADIA is a sovereign wealth fund owned by the Emirate of Abu Dhabi founded for the purpose of investing funds on behalf of the Government of the Emirate of Abu Dhabi.

Aditya Birla Health Insurance is a 51:49 joint venture between Aditya Birla Capital Limited (ABCL) and Momentum Metropolitan Strategic Investments Ltd, a wholly owned subsidiary of South Africa-based Momentum Metropolitan Holdings Limited.

"The Boards of Directors of Aditya Birla Capital Limited and Aditya Birla Health Insurance Co. Limited (ABHI) approved a proposal for a primary capital infusion of approximately Rs 665 Crore in ABHI, from a wholly owned subsidiary of the Abu Dhabi Investment Authority," Aditya Birla Capital Limited said in a regulatory filing on Friday (12 August).

The transaction values ABHI at approximately Rs 6,650 crore.

The completion of transaction is subject to receipt of statutory and regulatory approvals, including the approval of the Insurance Regulatory and Development Authority of India (IRDAI), the company said.

Upon the completion of the transaction, ADIA will own a 9.99 per cent stake, ABCL will hold a 45.91 per cent stake and MMH a 44.10 per cent stake, respectively, in ABHI, it added.

The health-insurance firm plans to use this capital to drive its growth in the health insurance market in India.

Commenting on the transaction, Vishakha Mulye, Chief Executive Officer of ABCL said, “In recent times health has become a key concern for all. With its differentiated Health - First model, ABHI is well positioned to address this concern, while also protecting health through insurance. An investment from ADIA underscores the strong and unique business model of ABHI and the franchise we have created".

Hamad Shahwan Al Dhaheri, Executive Director of the Private Equities Department at ADIA, said: “We see significant potential in India’s health insurance sector as penetration levels increase, driven by higher awareness and broader economic growth. Aditya Birla Health Insurance has a strong management team, a wellness-first product offering and a differentiated distribution model. We look forward to partnering with Aditya Birla Capital and Momentum Metropolitan Holdings to support the next phase of ABHI’s growth".