Mahindra & Mahindra Financial Services Limited (Mahindra Finance), has agreed to acquire 20,61,856 fully paid up equity shares of Mahindra Insurance Brokers Limited (MIBL) at a price of INR 1001 per share constituting 20% equity stake in MIBL, held by Inclusion Resources Pvt. Ltd. (IRPL). Mahindra Finance, MIBL and IRPL have executed a share purchase agreement in this regard.
The deal completion is subject to IRDAI and other regulatory approvals. On completion of this acquisition, MIBL will become a wholly owned subsidiary of Mahindra Finance.
Commenting on the acquisition, Ramesh Iyer, Vice Chairman & Managing Director, Mahindra Finance said, "The association between IRPL, MIBL & Mahindra Finance has been mutually rewarding for all the parties. IRPL has been a valued partner for us, and I would like to place on record the support we have received from IRPL and its nominee director on the Board of MIBL. MIBL has, over the years, built a strong retail broking franchise, been consistently profitable while adding up to 2 million customers annually. We believe that broking will continue to play a significant role in furthering penetration and growth of Insurance industry in India and therefore, as a wholly owned subsidiary of MMFSL, MIBL will continue to invest in expanding its retail insurance broking franchise (non-life and life), commercial lines & reinsurance broking, strengthening its position as one of India's leading insurance brokers".
Shares of Mahindra & Mahindra Financial Services Limited was last trading in BSE at Rs. 206.10 as compared to the previous close of Rs. 212.20. The total number of shares traded during the day was 170041 in over 2001 trades.
The stock hit an intraday high of Rs. 214.70 and intraday low of 205.05. The net turnover during the day was Rs. 35506660.00.