Prism Johnson Limited has announced a significant divestment decision, agreeing to sell its entire 51% stake in Raheja QBE General Insurance Company Limited (RQBE) to QBE Holdings (AAP) Pty Limited for Rs.324 crores. The Board of Directors approved this strategic transaction on March 2, 2026, marking the end of the company's joint venture with Australia's QBE Group in India's general insurance sector.

Transaction Overview

The share purchase agreement was executed on March 2, 2026, between Prism Johnson Limited, QBE Holdings (AAP) Pty Limited, and RQBE. This proposed transaction involves the complete divestment of Prism Johnson's controlling stake in its material unlisted subsidiary to QBE, which is already an existing shareholder in RQBE.

RQBE's Financial Contribution

RQBE has been a significant contributor to Prism Johnson's consolidated financials. As of March 31, 2025, the insurance subsidiary demonstrated substantial business metrics that highlight its importance to the parent company's operations.

Regulatory Approvals and Timeline

The completion of this proposed transaction is contingent upon several regulatory approvals and conditions precedent. The company has outlined a comprehensive approval process that must be satisfied before the deal can be finalized.

Key approvals required include:

• Shareholder approval through postal ballot process
• Approval from the Insurance Regulatory and Development Authority of India (IRDAI)
• Other statutory and regulatory approvals as may be required

The company estimates that the proposed transaction will be completed within 9 months from the execution date of the Share Purchase Agreement, subject to the fulfillment of all conditions precedent.

About the Buyer

QBE Holdings (AAP) Pty Limited is part of the QBE Group and operates as a wholly owned subsidiary of QBE Insurance Group Limited. The ultimate parent company is listed on the Australian Securities Exchange and represents a global insurance organization with operations spanning 26 countries across three divisions. Importantly, QBE Holdings does not belong to Prism Johnson's promoter, promoter group, or group companies, making this transaction an arm's length deal with an independent third party.

Strategic Implications

This divestment will result in the complete termination of Prism Johnson's joint venture with Australia's QBE Group in the general insurance business in India. The existing Shareholders Agreement will also be terminated as part of this transaction. Upon successful completion of the proposed transaction, RQBE will cease to be a subsidiary of Prism Johnson Limited, representing a strategic exit from the insurance sector for the company.

The total consideration is subject to certain adjustments upon completion of the transaction, as specified in the Share Purchase Agreement. The Board meeting that approved this significant transaction was conducted efficiently, commencing at 8:00 a.m. and concluding at 8:15 a.m. on March 2, 2026.

Prism Johnson Limited announced the launch of 'Prism Chakachak' Gypsum Plaster, marking a strategic expansion of its construction materials portfolio under the Prism Cement division. This new product introduction reinforces the company's commitment to providing comprehensive building solutions while leveraging its established distribution network across Central India.

Product Features and Specifications

Prism Chakachak Gypsum Plaster is positioned as part of the Premix Walling Range, designed to deliver superior performance in wall and ceiling applications. The lightweight, fast-setting, eco-friendly material offers several key advantages for construction projects:

Distribution Strategy and Market Reach

The company will distribute Prism Chakachak through its established cement business network, which maintains a strong presence in Central India. The distribution infrastructure includes:

• Dealer Network: Approximately 2,400 dealers
• Key Markets: Uttar Pradesh, Madhya Pradesh, and Bihar
• Availability: Across all company operating regions through existing distribution channels

This approach allows Prism Johnson to capitalize on its existing relationships and market penetration while introducing the new gypsum plaster product to established customer bases.

Business Portfolio Integration

The addition of gypsum plaster strengthens Prism Johnson Limited's integrated building materials portfolio, which spans multiple categories:

Strategic Market Positioning

The launch of Prism Chakachak Gypsum Plaster aligns with the company's strategy of expanding value-added construction materials while serving retail, institutional, and infrastructure customers. The product enables customers to access a wider range of construction and interior solutions under one roof, enhancing the company's position as an integrated building materials provider.

The gypsum plaster market represents a growing segment in India's construction industry, driven by increasing demand for quick-setting, efficient wall finishing solutions. By introducing this product through its established Prism Cement division, the company leverages existing brand recognition and distribution capabilities to enter this market segment effectively.