VideoconBSE -1.74 % Industries, which is one out of 28 companies that the Reserve Bank of India directed banks to refer to bankruptcy court, is exiting the insurance business by selling its 51.32% stake in Liberty Videocon General Insurance to Diamond Dealtrade- a DP Jindal Group Company and Enam Securities.
Videocon has submitted its proposal to Insurance Regulatory and Development Authority to sell its stake in the company. Diamond Dealtrade will buy 26% while and Enam Securities remaining 25.32%.
Liberty Videocon General Insurance had got approval from Irda to commence operations in April 2013. Initially, Videocon Industries held 74% of the share capital in the insurance firm, and the rest is owned by Liberty Citystate Holdings. After the increase in foreign direct investment limit, Liberty Mutual increased its stake in the company to 49%, leaving Videocon with a 51% share.
