Prism Johnson Limited has approved the sale of its entire 51% equity stake in its material unlisted subsidiary, Raheja QBE General Insurance Company Limited (RQBE), to the existing shareholder, QBE Holdings (AAP) Pty Limited. The aggregate consideration for the Proposed Transaction is set at Rs. 324 Crores. This divestment concludes the company’s joint venture in the general insurance business in India. Completion is contingent upon regulatory approvals, including IRDAI, and is expected within 9 months of the agreement date, March 2, 2026.
Divestment of Insurance Subsidiary Holding
The Board of Directors of Prism Johnson Limited, in a meeting held on March 2, 2026, formally approved the execution of a Share Purchase Agreement to divest its interest in Raheja QBE General Insurance Company Limited (RQBE). The transaction involves the sale of the Company’s complete 51% paid-up equity shareholding in RQBE to QBE Holdings (AAP) Pty Limited, the existing joint venture partner.
Transaction Financials and Impact
The aggregate consideration agreed upon for this Proposed Transaction is Rs. 324 Crores. This amount is subject to potential adjustments upon the final completion of the deal. As per the disclosures provided for the financial year ending March 31, 2025, RQBE contributed significantly to the group:
- Revenue: Contributed Rs. 498.91 Crores, representing 6.82% of Consolidated Turnover.
- Networth: Accounted for Rs. 253.66 Crores, which is 17.16% of Consolidated Networth.
Upon successful completion, RQBE will no longer be a subsidiary of Prism Johnson Limited, effectively terminating the company’s joint venture in the Indian general insurance sector with the QBE Group.
Conditions and Timeline for Closure
The Share Purchase Agreement was executed on March 2, 2026. The final closure of the transaction is subject to several key preconditions, including shareholder approval for Prism Johnson and necessary approvals from the Insurance Regulatory and Development Authority of India (IRDAI). While subject to these conditions, the management estimates that the completion date will fall approximately 9 months from the execution date of the agreement.
Buyer Details
The buyer, QBE Holdings (AAP) Pty Limited, is a wholly owned subsidiary of QBE Insurance Group Limited. The QBE Group is an international insurer listed on the Australian Securities Exchange. It is confirmed that the buyer does not belong to the promoter/promoter group of Prism Johnson Limited, and the transaction is not classified as a related party transaction.
Source: BSE
