Paytm, Vijay Shekhar Sharma to acquire Raheja QBE General Insurance

Paytm and its CEO Vijay Shekhar Sharma are set to acquire Raheja QBE General Insurance. The deal will be subject to regulatory approvals.

“The board of directors of the company, at its meeting held today, has approved divestment of its entire holding of 51 per cent of the paid-up equity share capital in Raheja QBE General Insurance Company Limited (‘RQBE’), a material subsidiary, to QORQL Private Limited, a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm (owned by One97 Communications Limited), for an aggregate consideration of ₹289.68 crore,” said Prism Johnson in a regulatory filing on Monday.

The general insurer is 51 per cent owned by Prism Johnson and the balance 49 per cent is owned by QBE Australia.

According to the filing, the transaction is expected to be completed by March 31, 2021.

In a statement, Amit Nayyar, President, Paytm said, “Its strong management team will help us accelerate our journey of taking insurance to the large population of India with the aim of creating a tech-driven, multi-channel general insurance company with innovative and affordable insurance products.”

Raheja QBE said all its employees would continue working at Mumbai and other locations.