Jio Allianz General Insurance Gets Rs 640 Crore Capital Boost From Both Partners
Jio Allianz has received Rs 640 crore in fresh capital from its two partners. The infusion is set to support the insurer’s financial strength and business expansion.
Jio Allianz gets a Rs 640 crore capital boost from both partners. The fresh infusion will strengthen the general insurer’s capital base and growth plans.
Jio Allianz: Five months after putting their names on a new general insurance company, Jio Financial Services Ltd and Allianz Europe B.V. have backed it with fresh capital: Rs 640.10 crore, split exactly down the middle.The two partners each invested Rs 320.05 crore in Jio Allianz General Insurance Ltd, their 50:50 joint venture, the company said on Wednesday.
Jio Allianz: How the Rs 640 crore was raised
The money came through a rights issue. Both Jio Financial Services and Allianz Europe B.V. subscribed to, and were allotted, 32,00,50,000 equity shares of Rs 10 each in the joint venture. The shares were issued for cash at par.
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Jio Allianz General Insurance will use the proceeds to fund its business operations. After the latest infusion, Jio Financial Services’ aggregate investment in the joint venture stands at Rs 375 crore to date.
Jio Allianz: Related-party transaction, no approvals needed
Jio Financial Services said the investment is a related-party transaction and was made on an arm’s-length basis. The company added that none of its promoter, promoter group or other group companies has any interest in the investment. It also said no governmental or regulatory approval is required for the transaction.
Jio Allianz: From incorporation to capital infusion
Jio Financial Services said in May this year that it had incorporated the joint venture with Allianz Europe B.V. under the name Jio Allianz General Insurance Limited. The incorporation followed an earlier disclosure about the execution of the joint venture agreement between the two entities.
According to the exchange filing, the company has been formed to carry on the business of general insurance, including health insurance, in India, subject to regulatory approvals.
At the initial subscription stage, Jio Financial Services invested Rs 4.95 crore for 49,50,000 equity shares with a face value of Rs 10 each. That gave it a 50% stake in the venture.
