Mumbai, July 7: Japanese major Tokio Marine has increased its stake in insurance venture Iffco-Tokio General Insurance to 49 per cent by acquiring additional shares for Rs 2,530 crore.

Indian Farmers Fertiliser Cooperative Ltd (Iffco), the world's largest fertiliser manufacturer and marketing firm in the cooperative sector, entered into a joint venture with Tokio Marine in 2000.

Tokio Marine had 26 per cent stake in the venture, while Iffco had 72.64 per cent and Indian Potash (IPL) held 1.36 per cent in the venture.

"Tokio Marine has purchased a total 6,19,43,945 shares of Iffco-Tokio from Iffco and IPL for a total consideration of Rs 2,530 crore," Iffco managing director U.S. Awasthi said in the capital.

According to the agreement, Iffco has transferred 5,82,81,173 shares of Iffco-Tokio to Tokio Marine for Rs 2,380.4 crore, while IPL sold 36,62,772 shares for Rs 149.6 crore. While these shares were sold at Rs 408.43 apiece to Tokio Marine, the latest transaction will value the general insurance venture at Rs 11,000 crore.

Iffco has earned about 20 times more on its original investment. The three promoters - Iffco, IPL and Tokio Marine - had invested Rs 560 crore in the company.

Awasthi added that the transaction would help Iffco raise the required capital to focus on more agri-businesses. Iffco's stake will come down to 51 per cent while IPL will exit the insurance firm.