The Bharti group’s stake valuation has gone up multiple times in both life and general insurance companies they were operational.
The group is divesting its stake to AXA group, which has already received Foreign Investment Promotion Board (FIPB) approval.
In the general insurance venture, when the issued capital was Rs 162.58 crore, the value of Bharti’s stake (77.78 per cent) was Rs 126.45 crore. With the general insurance venture now being valued at about Rs 1,611 crore, the value of its stake is Rs 1,253 crore, which is a jump of almost 10 times from the original value.
Similarly, in life insurance, valuation has increased by almost 21 times.In the life insurance business, where Bharti has 40 per cent stake, there was paid-up capital of Rs 150 crore of which Bharti’s stake was Rs 60 crore. Now, with the venture being valued at Rs 3,206 crore, Bharti’s stake would be valued at Rs 1,282.4 crore, which is more than 21 times growth.