Burmans Set To Give Up Control Of Aviva Life
- ByAyushi Ray | August 11, 2021
Burmans set to give up control of Aviva Life and they have also planned to sell 25% stake of the insurance company. This is part of their strategy to raise capital for the core consumer goods business, a close source confirmed. The deal will see the Burman family stake drop to 26% from the current 51% in Aviva Life Insurance Co, Aviva’s holding will rise to 74%, giving the foreign partner control of the life insurer.“Going by the current actuarial valuations, the 25% stake to be augmented by Aviva could be worth at least ₹1,500 crore. The business is growing, and Aviva Life’s potential is huge, given the niche markets and customer segments in which Aviva Life has a better grip than other life insurers in India,” as per a source
The Burman family is actively seeking to grow its range of financial services businesses such as in investment banking, mutual funds and insurance, and so has sharpened its focus on the FMCG business under Dabur India. This may see the family monetize stakes in certain businesses and mobilize the proceeds to expand the product range and boost Dabur’s FMCG businesses, which have received a boost since the coronavirus outbreak last year. To be sure, the Burman family, among the top 20 richest in India, with an estimated net worth of around $10 billion according to Forbes rich list, has been looking to monetize its stake in Aviva Life for quite a few months and had also entered into stake-sale talks with e-commerce firm Flipkart’s co-founder Sachin Bansal. The talks did not materialize as of now because of differences over valuations and ownership terms.
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