By Reghu BalakrishnanMUMBAI: US-based private equity major Warburg Pincus LLC is all set to buy Legal and General Group Plcs 26 per cent stake in IndiaFirst Life Insurance Co.
Ltd, people aware of the development said.
The board of IndiaFirst is meeting on Thursday to approve the deal with Warburg.According to the people, Warburg will pay about Rs.710 crore ($105 million) for 26 per cent stake owned by Legal and General Group Plc.
IndiaFirst is a joint venture between Bank of Baroda Ltd, which owns a 44 per cent stake, Andhra Bank, which holds 30 per cent, and Legal and General.
IndiaFirst Life sells products such as term plans, savings, education and retirement plans.
Mumbai based investment bank Ambit Corporate Finance Pvt.
Ltd has advised Legal and General Group on the sell out process.Others who were in race include General Atlantic LLC, Ergo International AG, Manulife Financial Corp and Canadian billionaire Prem Watsas Fairfax.Warburg Pincus, Legal and General Group and IndiaFirst could not be immediately reached for comments.
Warburg has a wide exposure in Indian financial services space with its investments in AU Financiers and Capital First Ltd.
Global PE investors has been keen on Indian insurance sector for last couple of years, especially after the successful listing of leading insurance firms last year.
Two major life insurance firmsSBI Life Insurance Co.
Ltd and HDFC Standard Life Insurance Co.
Ltd got listed last year.
The Rs8,364 crore IPO of SBI Life Insurance was subscribed 3.57 times.Last year also saw insurance IPOs such as General Insurance Corp.
of India (Rs11,175 crore), New India Assurance Co.
Ltd (Rs9,466.9 crore), HDFC Standard Life Insurance Co.
Ltd (Rs8,695 crore) and SBI Life Insurance Co.
Ltd.