Warburg Pincus concludes 26% stake buy in IndiaFirst Life

Our Bureau Mumbai | Updated on February 11, 2019 Published on February 11, 2019

Global private equity firm Warburg Pincus has concluded the purchase of a 26 per cent stake in IndiaFirst Life Insurance, eight months after the announcement.

“Carmel Point Investments India Private Limited (CPIIPL), incorporated by Carmel Point Investment Ltd, a body incorporated under the laws of Mauritius and owned by private equity funds managed by Warburg Pincus LLC, has bought over the 26 per cent stake,” IndiaFirst Life Insurance said in a statement on Monday.

This stake in IndiaFirst Life was earlier held by British Financial Services entity, Legal and General.

Transaction value

The stake-sale plan was announced in June last year. Though the transaction value remains undisclosed, it is estimated at about ₹710 crore.

The transfer process after the stake sale was concluded with approval from the Insurance Regulatory and Development Authority of India, and other regulatory agreements, on February 7.

This is the first instance of a private equity firm investing in an Indian life insurer. State-run lenders Bank of Baroda (44 per cent) and Andhra Bank (30 per cent) are other shareholders of the 2010-incorporated company.

“The shareholding banks’ continued support, together with CPIIPL, is set to reinvigorate and lend fillip to the organisation’s plans,” the statement further said.

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Published on February 11, 2019
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