Premji Invest, the family investment arm of Wipro chairman Azim Premji, is likely to buy a stake in HDFC Standard Life Insurance, according to a media report. The likely investment will mark the billionaire's entry into the insurance business.
Reports quoting sources said that Premji Invest is likely to purchase 1 per cent stake in HDFC Standard Life Insurance for Rs 185 crore, valuing the insurer at Rs 18,500 crore.
The investment arm of the Wipro founder's family had earlier invested in ecommerce companies Snapdeal and Myntra. Myntra was acquired by Flipkart this year.
Premji Invest had also made investments into retailers Fabindia, Trent, Shoppers Stop and Future Lifestyle Fashions.
Insurance companies have rallied sharply since the Narendra Modi government announced its decision to hike FDI cap in insurance to 49 per cent from 26 per cent. The Cabinet earlier this month approved the bill after incorporating the suggestions of a Parliamentary select panel. Higher FDI will lead to higher growth of the industry, analysts say.
HDFC Life Insurance is among the oldest private life insurance company in the country, with nearly Rs 60,000 crore of assets under management. HDFC Ltd. holds 72.37 per cent and UK's Standard Life (Mauritius Holding) holds 26 per cent of equity in the joint venture, while the rest is held by others.
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