Insurance management company Ideal Insurance Brokers Pvt. Ltd announced on Monday that it has acquired the insurance broking division of Mumbai-listed Emkay Global Financial Services Ltd for Rs 1.71 crore (about $239,000) in a cash deal.
It will take over the entire team and existing insurance business of Emkay Insurance Brokers Ltd, a wholly-owned subsidiary of Emkay Global Financial Services.
The transaction has received an in-principle approval from the Insurance Regulatory and Development Authority of India (IRDAI), Ideal Insurance Brokers said in a statement.
“They have a great team and some notable clients which will make our footprint in West [India] even stronger,” said Rahul Agarwal, chief executive of Ideal Insurance. “We are looking at more acquisitions across India.”
Emkay Global had informed the stock exchanges last week that it had surrendered its original insurance broking license to IRDA, the country’s insurance regulator.
Kolkata-based Ideal Insurance Brokers provides insurance-based risk solutions to both individual and corporate clients. It has a presence in major cities including Mumbai, Pune, Bangalore, Hyderabad, Delhi, Surat and Raipur.
Incorporated in 2005, its insurance products cover heath, life, fire, marine, infrastructure and credit, among others. The company has a dedicated health insurance portal, 121Policy.com
In April, Ideal Insurance Brokers had raised $1 million (Rs 6.5 crore) in a seed round from funding and incubation platform Venture Catalysts.
The financial services offered by Emkay Global include institutional equities, portfolio management services, wealth management and investment banking.