LeapFrog Investments buys 15% in Mahindra Insurance Brokers for Rs80 crore
21 September 2012
LeapFrog Investments, a US-based $135-million social investment firm, today acquired a 15-per cent stake in Mahindra Insurance Brokers Ltd (MIBL), a subsidiary of Mahindra Finance, for Rs80 crore ($14.81 million).
The deal comes a year after LeapFrog invested Rs67 crore ($15-million) for a 10 per cent stake in Chennai-based financial services company Shriram Capital, a unit of Shriram Group.
The purchase values MIBL, which was launched in 2004 for just Rs50 lakh, at Rs520 crore.
"We feel very proud that we invested Rs50 lakh and today it is valued at Rs520 crore," said Mahindra & Mahindra chairman and MD, Anand Mahindra to The Economic Times.
Mumbai-based MIBL is a wholly owned subsidiary company of Mahindra & Mahindra Financial Services Ltd (Mahindra Finance) – one of India's leading rural non-banking finance company that focuses on the rural and semi-urban Indian market.
The company provides direct insurance broking for corporate and retail customers and offers a range of products for the non-life and life segments. In addition, MIBL also offers value-added services like risk management.