GMR to divest stake in ING Vysya Life

GMR Industries Limited, part of the Hyderabad-based Rs 2,500 crore GMR Group, told the stock exchanges on Friday, the company could sell its stake in ING Vysya Life Insurance.

The company said, it was "exploring" the divestment of its stake in the life insurer to fund its own business expansion and repayment of some debt. The life insurance company was formed as a joint venture between Dutch financial conglomerate ING Group, GMR Industries and the GMR Group-promoted Vysya Bank.

GMR group's stake in the life insurer has progressively reduced, either directly or through Vysya Bank, after ING became a majority shareholder in the bank in 2002.

Last month, ING Vysya Bank, as the bank came to be called, agreed to sell its entire stake of 14.87 per cent in the life insurer to Gujarat Ambuja Cement Limited, subject to regulatory approval.

A GMR spokesperson here said, GMR Industries held some 47 per cent stake in ING Vysya Life Insurance Company Limited, currently capitalised at Rs 345 crore. ING itself holds 26 per cent, the maximum allowed under Indian law today. The Enam Group is the other important stakeholder.