QBE to raise stake in Indian company to 49 percent

Australia's QBE Group will raise stake in Raheja QBE General Insurance Company to 49 percent by buying an additional 23 percent from its existing partner Prism Cement for USD19.07 million.

"Prism Cement has agreed, in principle, to sell 23 percent of its holding in the paid-up capital of Raheja QBE General Insurance Company, to its existing partner in Raheja QBE, namely the QBE Group, Australia, for a consideration of approximately AUD21,500,000 (about INR103 crore)," the company said in a filing to the stock exchange.

With this, the Australian partner's stake in Raheja QBE General Insurance Company would rise to 49 percent, while Prism Cement will hold remaining 51 percent. The Indian government has earlier this year allowed FDI up to 49 percent in the domestic insurance sector.

"Once the proposed transaction is consummated, the company's shareholding in Raheja QBE shall stand reduced from 74 percent to 51 percent," Prism Cement said after a board meeting.