Private equity firm True North has secured the approval of the Insurance Regulatory and Development Authority of India (IRDAI) to acquire 51% stake in Max Bupa Health Insurance from Max India.

The all-cash deal, which was signed in February this year, gives Max Bupa an enterprise valuation of INR10.01bn ($140m).

Following completion of the transaction, Max India will get a cash inflow of INR5.11bn ($71.42m) that will be used for existing and new business opportunities.

In a statement, Max Bupa said that its existing joint venture (JV) partner Bupa remains committed to the JV in an active role.

True North will appoint directors on Max Bupa’s board upon deal completion.

True North partner Divya Sehgal said: “As the health insurance sector grows in India, True North is looking to build the most trusted brand in health insurance in the country. We believe Max Bupa is one of the best positioned brands and businesses in the sector.

“The Max Group and Bupa have immensely contributed to the journey of Max Bupa and we look forward to building on the same in partnership with Bupa.

“Our priority is to work seamlessly with both teams at Max and Bupa through this transition towards the benefit of Max Bupa’s customers, employees and stakeholders.”

Formerly called India Value Fund Advisors, True North was founded in 1999.