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    HDFC-Apollo Munich deal receives Irdai nod, set to close next week, says Apollo Hospitals’ Shobana Kamineni

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    HDFC-Apollo Munich deal receives Irdai nod, set to close next week, says Apollo Hospitals’ Shobana Kamineni

    Apollo Munich Health Insurance's stake sale to Housing Development Finance Corporation is expected to close next week after the deal received all necessary approvals, said Shobana Kamineni, executive vice-chairman of Apollo Hospitals.
    HDFC on January 2 said the Insurance Regulatory and Development Authority of India (Irdai) has approved the company's proposed deal to acquire a 51.2 percent stake in Apollo Munich Health Insurance.
    Apollo Munich Health Insurance is a joint venture between Apollo Hospitals and German reinsurer Munich Re Group.
    “It takes significant pressure of the family pledged shares for sure and this is something that we have been very conscious about for the past year and it will reduce our pledged shares,” Kamineni said.
    She further added that the majority of the proceeds will be deployed into Apollo Hospitals and the family that owns the balance. According to Kamineni, pledge in the company after the Apollo Munich deal will be 25-26 percent.
    Kamineni said, “This transaction will give about Rs 300 crore to Apollo Hospitals, so it will bring down the debt to some level but there are other measures that we are looking at to bring down debt.”
    “However, I don’t think that Apollo Hospitals is stressed in terms of debt level because the quarter-on-quarter growth has been stellar for the last 5 quarters,” added Kamineni.
    On business front, she said, “As every responsible Indian company, we would make sure that we have enough headroom and we are looking at reducing debt. We have several levers, so I cannot comment on them now.”
    Post the completion of the proposed acquisition, Apollo Munich will be merged with and into HDFC Ergo, subject to approval from the Mumbai bench of National Company Law Tribunal.
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