Warburg Pincus may soon emerge as the biggest shareholder in IndiaFirst Life Insurance, reports The Economic Times.
Private equity investor might acquire an additional 20.5 percent stake in the insurer from Andhra Bank, which currently holds a 30 percent stake in it. At present, Bank of Baroda, Andhra Bank and Warburg Pincus own 44 percent, 30 percent and 26 percent stake, respectively, in IndiaFirst.
The sale is expected to bring in Rs 700 crore for state-run lender Andhra Bank, the article quotes sources as saying.
Earlier in February, Mauritius-based Carmel Point Investments India Pvt, owned by private equity funds that Warburg Pincus LLC manages, purchased 26 percent stake in IndiaFirst for Rs 710 crore, pushing the company’s valuation up to Rs 2,800 crore.
Following its merger with Dena Bank and Vijaya Bank, Bank of Baroda has become the country’s third largest state-run lender. After its merger with Union Bank of India and Corporation Bank, following the Finance Minister’s announcement, Andhra Bank will have to sell products of Star Union Daichi.