The M Pallonji Group is expected to hold a 51% stake, with additional capital support from Federal Bank and a clutch of family offices. At the R1 stage, the regulator evaluates the business plan, capital commitment and governance structure, following which proposals are either moved to the next stage, sent back for modifications or rejected. The R2 stage involves demonstrating share capital readiness, while R3 is the final approval.
The venture will be promoted by Mehli Mistry and Pheroze Mistry, cousins of the Shapoorji Mistry family.
The company is expected to begin operations with an initial capital infusion of about Rs 200 crore, backed by around six investors, one of the sources said.
The development comes amid a fresh wave of new entrants in the sector. Kiwi General Insurance, backed by WestBridge Capital and led by former Tata AIG General Insurance CEO Nilesh Garg, recently got its licence.
