The Indian government gives nod to the French insurance company AXA to increase its stake by 49% (Rs 858.6 crores capital investment) in the Bharti Group JV under FDI regulations.
Furthermore, the government allowed AXA to invest Rs 431.40 crores in the general insurance sector jointly managed by the Bharti group.
Jointly, AXA's FDI in Bharti group will be worth Rs 1,290 crores.
It is the first FDI proposal approved post the launch of the Insurance Bill in March 2015, which allows an increase of foreign investment cap from 26% to 49%. With this brilliant strategy, it is expected that more foreign investors will be motivated to improve their stakes holding in the Indian insurance business.
Source: This news was published on May 5, 2015 in economictimes.indiatimes.com under the title: Insurance FDI: AXA to up stake in Bharti JVs for Rs 1,290 crore