France-based insurer Axa has received approval from the Indian Government to increase its stake from current 26% to 49% in insurance joint ventures (JVs) with Bharti Enterprises.
The company has obtained Foreign Investment Promotion Board (FIPB) approval to increase the interest in the JVs.
In March this year, the Indian Government had approved a bill, allowing foreign firms to increase their stake to 49% in the country’s insurance companies.
At present, Axa has 26% interest each in Bharti Axa Life Insurance and Bharti Axa General Insurance and the remaining stake in both firms is controlled by Bharti Enterprises.
As per the finance ministry statement, the increase in Axa’s interest in the life insurance venture will result in a foreign direct investment of INR8.59bn ($135m) and INR4.31bn ($63m) in the general insurance venture, reported Reuters.
According to the statement, FIPB has approved 19 foreign direct investment proposals with a value of around INR21.65bn ($339m) last month.
Image: Axa has received FIPB to raise its stake in Bharti JVs. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.