Sundaram Finance may see a buyer for its insurance arm Sundaram General Insurance as top American investment bank Goldman Sachs is in talks to acquire a stake in the company through one of its private equity fund, according to a report in Mint.
“Royal Sundaram has been in the market to sell a significant minority stake to bring on a partner to help fund the growth of the business. One of the financial investors that has shown interest in picking up a stake is Goldman Sachs. The two parties are engaged in discussions,” a person close to the development said.
But it is likely that the deal may not go through.
According to a Bloomberg report, the insurance firm was looking to sell up to 49 per cent stake in the company, which could fetch it around USD 500 million.
Royal Sundaram offers motor, health, personal accident, home and travel insurance to individual customers and offers specialised insurance products for fire, marine, engineering, liability and business interruption risks to commercial customers.
Royal Sundaram also offers products designed specifically for small and medium enterprises and rural customers.
Post the joint venture between Sundaram Finance and Royal & SunAlliance Insurance Plc, UK, Royal Sundaram came into existence. And in July 2015, 26 percent equity stake of Royal Sundaram was acquired by Sundaram Finance from Royal & SunAlliance Insurance.moneycontrol