Edelweiss Tokio Life on Tuesday said it expects over Rs 500 crore equity infusion over the next three months.
The Foreign Investment Promotion Board (FIPB) on Tuesday gave its nod to the proposal of Edelweiss Tokio Life Insurance Co Ltd to increase foreign equity from 26% to 49% of its paid-up capital.
This is the second FDI proposal to come to the insurance space after the government passed the new law allowing 49% foreign holding in the sector after Bharti Axa did so a few months back.
"We are likely to receive over Rs 500 crore from our foreign partner and it may take three months from after completing the regulatory formalities," Edelweiss Tokio Life Insurance managing director and chief executive Deepak Mittal told PTI shortly after getting the government's nod.
He further said the company will use the capital to increase distribution and branch networks, and investment in technology to reach out to the customers. He also said the company will add 20 more branches over the next 12 months.
Edelweiss Tokio Life Insurance is a joint venture between Edelweiss Financial Services and Tokio Marine Holdings, which is a global leader with over 135 years of experience in the business. The Japanese company currently owns 26 per cent in the JV.
While recommending the government approval for FDI hike to 49% in the company by the foreign partners Tokio Marine and its fully-owned entity Nichido Fire Insurance in Edelweiss Tokio Life Insurance on August 3, the FIPB had expected that the foreign partner will be investing not more than Rs 540 crore into the company.
Since inception in 2011, the company has expanded its distribution footprint across agency and alternate channels and has built 60 branches across 50 major cities and has 11,000 agents.
