Samara Capital in Arrangement to Buy Aditya Birla Capital's Insurance Broking Arm
Amazon India's private equity partner, Samara Capital is planning to buy the insurance broking arm of Aditya Birla Capital Ltd.
"Over the past few weeks, Samara Capital and Aditya Birla Capital (the promoter of Aditya Birla Insurance Brokers Ltd) have been negotiating the valuation. For Samara, entering the financial services business is a crucial part of its strategy," said sources.
The deal is estimated to be worth between Rs 800 crore and Rs 1,000 crore, as per the report. If the deal goes through, it could become one of the biggest deals in the sector.
Last week, sources reported that Aditya Birla Capital is considering selling its insurance brokerage unit to restructure its financial services business.
"The publicly-traded company has held talks with potential buyers about a sale of Aditya Birla Insurance Brokers Ltd. as it failed to scale up the 19-year-old business," said sources.
The company plans to close the transaction by March 31, according to the report.
The broking arm of Aditya Birla Capital offers broking and advisory services to companies and individuals, along with reinsurance solutions to insurers. It has more than 350 people working across 11 locations in India.