Aditya Birla Nuvo gains on foray into health insurance

Aditya Birla Nuvo will hold 51% stake in Aditya Birla Health Insurance Co. Ltd

Shares of Aditya Birla Nuvo were up nearly 3% at Rs 1,752 after the company announced a joint venture with a leading South African financial services firm MMI Holdings Ltd., to foray into the health insurance and wellness business in India.

The joint venture will be named Aditya Birla Health Insurance Co. Ltd in which Aditya Birla Nuvo Ltd will hold 51% stake, the company said in a release.

Meanwhile, the joint venture is in the process of making application to the Insurance Regulatory and Development Authority of India to obtain license to start health insurance and wellness business in India.

The stock opened at Rs 1,705 and touched a high of Rs 1,764. At 1PM, over 100,000 shares were traded on both the stock exchanges.