Aditya Biria Nuvo (ABNL) has completed the transaction whereby Sun Life Financial (Sun Life) has increased its stake in the life insurance joint venture, Birla Sun Life Insurance (BSLI) from 26% to 49%. ABNL continues to hold the controlling stake in BSLI at 51%. ABNL has received a sum Rs 1,664 crore from the stake sale, valuing BSLI at Rs 7,235 crore.
With the regulatory approvals in place, from Insurance Regulatory and Development Authority of India (IRDAI), Foreign Investment Promotion Board (FIPB) and Competition Commission of India (CCI), ABNL sold approximately 437 million equity shares constituting 23% of the issued and paid up equity share capital of BSLI to Sun Life. The Office of the Superintendent of Financial Institutions in Canada, the principal regulator of the Canadian insurer Sun Life, has also approved of the transaction.
The proceeds will reduce the net debt of ABNL substantially. Coupled with the free cash flow generation from divisions, the standalone balance sheet of ABNL stands strengthened to support its growth plans.
