Mahindra & Mahindra Financial Services (Mahindra Finance) has completed the acquisition of a 20% stake in Mahindra Insurance Brokers (MIBL) for Rs2.06bn ($24.8m).

The purchase of 2,061,856 equity shares in MIBL from Inclusion Resources increased the total stake owned by Mahindra Finance in MIBL to 100% from 80%.

The deal closed after Mahindra Finance obtained approval from the Insurance Regulatory and Development Authority (IRDAI).

MIBL will now operate as a completely owned subsidiary of Mahindra Finance.

With the takeover, MIBL will now invest in broadening its retail insurance broking franchise, as well as commercial lines and reinsurance broking.

In its stock exchange filing, Mahindra Finance said: “This is to update you that the company has on 22 September 2023, pursuant to the receipt of approval from IRDAI, completed the acquisition of 20,61,856 equity shares of Rs10 each of MIBL, at a price of Rs1,001 per share.

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“Consequently, MIBL has become a wholly owned subsidiary of the company with effect from 22 September 2023.”

This acquisition is based on a share purchase agreement entered by the companies in October 2022.

MIBL focuses on delivering insurance broking solutions to corporations and individuals.

Apart from broking solutions, the company also provides risk, portfolio and claims management expertise.

MIBL announced its entry into the online insurance market in September 2020 to deliver insurance products through an online insurance portal, PayBima.