Janashakthi Insurance buys 25% of First Capital Holdings from parent for Rs. 3.75 b

• Says related party transaction creates strategic synergies for both Janashakthi Insurance and First Capital Holdings

In a related party transaction, Janashakthi Insurance has acquired 25% stake in First Capital Holdings for Rs. 3.75 billion from Janashakthi Ltd.

The stake amounts to 101.2 million shares and was done at Rs. 37.10 per share.

The price was arrived at based on justified P/B, Percentage of Assets under Management, Net Asset Value and Adjusted Net Asset Value of subsidiaries of FCH.

Janashakthi said the acquisition price is justified by an independent valuation conducted by Capital Alliance Partners and is at a discount.

Janashakthi said the transaction creates strategic synergies for both Janashakthi Insurance and First Capital Holdings.

The share price of First Capital Holdings yesterday closed at Rs. 28, down by 10 cents. The share price of Janashakthi Insurance dipped by 20 cents to Rs. 36.80.

As at 30 September 2023, Janashakthi Ltd., held 83% stake in First Capital Holdings, public float of which was 16.86% held by 6,634 shareholders. Janashakthi Ltd., owns 74.23% stake in Janashakthi Insurance whilst First Capital Ltd., holds 5.78%. The public holding of Janashakthi Insurance is 20% held by 4,280 shareholders.