India: Poonawalla Fincorp to divest stake in Magma HDI General Insurance

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The board of directors of Poonawalla Fincorp Ltd (PFL) has approved divestment of the company’s direct and indirect shareholding in Magma HDI General Insurance in order to comply with requirements of the Reserve Bank of India and IRDAI.

Sanoti Properties, which is held by Adar Poonawalla and Serum Institute of India Private Limited; has agreed to acquire the direct and indirect stake of the Company in Magma HDI. This structure is in line with other financial services groups with NBFC and general insurance operations and will also allow a framework for continued business relationship between PFL and Magma HDI.

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