by Ganesh Nagarajan Prathap C Reddy and his family, founders of India\u2019s Apollo Hospitals Enterprise, plan to sell their holdings in an insurance venture with Munich Re to repay debt, people with knowledge of the matter said. The family is seeking to sell its entire holding of 41% in Apollo Munich Health Insurance, for about Rs 1,200 crore ($170 million) in six months, the people said asking not to be identified as the discussions are private. The proceeds will be used to repay part of the debt raised by pledging Apollo Hospital\u2019s equity as collateral, the people said. Investors have been concerned about leveraged companies including Subhash Chandra\u2019s Essel Group and Anil Ambani-controlled firms that have borrowed by offering shares as collateral leaving them vulnerable to margin calls as stocks plummet. Shares of Apollo, India\u2019s biggest hospital chain operator, which has about Rs 3,430 crore of debt, plunged the most in seven years on Monday after the founders pledged more shares to raise funds to repay debt. Also Read:\u00a0Asus Rog Phone review: A strong phone designed for the Avengers \u201cWe are aware of the recent increase in our pledge levels,\u201d Apollo\u2019s managing director Suneeta Reddy said in a text message when asked about the asset sale plan. \u201cWe have clear plans to reduce the same by at least 50% over the next six months.\u201d She didn\u2019t comment about the plan to sell stake in the insurance venture. More than three-fourth of about 34% stake that the Reddy family holds in the hospital operator is kept as collateral for loans, the people said. Four companies including two private equity funds have shown interest in acquiring the family\u2019s holdings in the venture with the world\u2019s largest reinsurer, one of the people said, declining to disclose further details. Munich Re is also planning to sell its stake in the venture, according to a media report report in November. The German company is in talks with HDFC Ergo General Insurance, according to the report. Lenders dumped shares of Anil Ambani companies after the value of the collateral plummeted following a selloff that wiped 126 billion rupees off the group\u2019s market value this month. Media tycoon Chandra\u2019s Essel Group signed a pact with its lenders that protects the group\u2019s borrowings against shares from being counted as default until Sept. 30, even if their value erode. Apollo Munich Health\u2019s gross written premiums, or the revenue from insurance contracts, jumped by a third to 17.2 billion rupees in the year ended March 2018. Apollo Hospitals\u2019 owns about 10% of the venture.