Sanlam keen to up Shriram Capital stake; eyes banking licence

JOHANNESBURG: South African life insurance major Sanlam wants to increase its 26 per cent stake in Shriram Capital to 49 per cent, subject to approval from Indian regulators.

The company is also keen to get a banking licence in India.

Sanlam Chief Executive Johan Van Zyl said the company has set aside Rs 50 crore of its Rs 400 crore discretionary budget to raise its stake in Shriram Capital as it sees opportunity in high growth markets in Asia.

The company has wanted to acquire a bigger shareholding in Shriram for some time now but has been held back by the strict regulations on foreign ownership of insurance companies in India.

However, Van Zyl is buoyant about the possibility of the threshold for foreign ownership being increased to 49 per cent soon.

Shriram Capital provides life insurance, vehicle finance, retail stock broking and financial advisory services to a huge number of middle class customers in India.

Sanlam is also keen to acquire a banking licence in India and has set aside a billion rand for this purpose, Van Zyl said, adding that the company is eyeing not only India, but also Malaysia, where it is looking for a life insurance partner.

The company already has a 49 per cent stake in Malaysian short-term insurer Pacific and Orient Insurance Company Berhad.