In the first instance of a foreign company raising its holding in an Indian venture following the promulgation of the ordinance on insurance laws, UK-based Bupa on Monday said it will increase its stake in Max Bupa to 49% from the current 26%.
Max Bupa is a 74:26 joint venture between Analjit Singh-promoted Max India Ltd and Bupa.
The government last month passes an ordinance to raise the foreign holding cap in insurance to 49% from 26%.
Bupa will soon seek regulatory approvals to raise its stake. No financial terms were disclosed.
"This decision underlines Bupa's commitment to the Indian health insurance market," said David Fletcher, MD, international development markets, Bupa.
Besides Bupa, Anil Ambani-led Reliance Capital has also indicated its willingness to rope in a foreign partner with up to 49% stake in its health insurance venture.
Max India shares closed 1.6% up to Rs 394 on the BSE on Monday.
Max India MD Rahul Khosla said the move by Bupa is proof of the huge opportunity that exists for health insurance in India.
"There would be many more such cases where foreign investors would want to raise stakes in insurance companies however, the roadmap will be clear once it becomes an act," Ashvin Parekh, managing partner, Ashvin Parekh Advisory Services told HT.