Bank of Baroda’s Board accorded approval for divestment of a part of its shareholding in a subsidiary — lndiaFirst Life Insurance Company Ltd (IFLIC).
The public sector bank plans to divest up to 12.50 per cent of IFLIC’s current paid-up share through an offer for sale in the initial public offer of the insurer or any other mode permissible under applicable law and subject to market conditions and statutory approvals.
The bank, in a regulatory filing, said it would ensure that its shareholding in IFLIC does not fall below 51 per cent of the current paid-up equity share capital of the life insurer. BoB increased its stake in IFLIC from 44 per cent to 65 per cent, buying Union Bank of India’s 21 per cent stake last year.
Carmel Point Investments India Pvt Ltd, owned by private equity funds managed by Warburg Pincus LLC., owns 35 per cent in IFLIC. As of March 2022, IFLIC had ₹18,932 crores of assets under management (AUM).