ERGO hikes stake in HDFC ERGO by 22.9% to 48.74%

Germany's ERGO International will buy 22.9 per cent additional stake in HDFC ERGO General Insurance for Rs 1,122 crore, becoming the latest foreign insurer to increase holding in Indian venture following relaxation of FDI norms in the sector. 

"Housing Development Finance Corporation Ltd (HDFC) and the ERGO Insurance Group, Germany (ERGO) today announced that they had agreed the terms under which ERGO would increase its stake in HDFC ERGO General Insurance Company," HDFC said in a regulatory filing. Under the agreement, ERGO will buy 12,33,57,262 shares of HDFC ERGO at a price of Rs 90.97 per share aggregating to Rs 1,122 crore, said a statement in the filing.