Money & Banking

Paytm, Sachin Bansal’s Navi among bidders for DHFL stake in insurer

Mumbai | Updated on November 12, 2020

Oaktree, Piramal, too, submit EoIs for 50% stake in Pramerica Life

Over half-a-dozen companies including Vijay Shekhar Sharma’s Paytm, Sachin Bansal-led Navi, US-based Oaktree Capital, and Mumbai-based Piramal Enterprises have evinced interest in picking up the stake Dewan Housing Finance Corporation Ltd held in its life insurance joint venture, Pramerica Life Insurance.

EoI submission

Sources close to the development said six-seven companies have submitted expressions of interest (EoIs) to acquire DHFL’s stake in Pramerica Life Insurance, earlier known as DHFL Pramerica Life Insurance Company.

DHFL owns a 50 per cent stake in the insurer through subsidiary DHFL Investments Ltd. The Wadhwan family owns 1 per cent through a promoter group company. Prudential International Insurance Holdings holds the balance 49 per cent stake.

Lenders to DHFL have invited bids for the stressed NBFC’s stake in the insurance company.

“The stake sale in Pramerica Life Insurance is independent of the resolution process for DHFL,” noted a person familiar with the development.

Separately, Piramal and Oaktree are among the four bidders for DHFL.

Pramerica Life Insurance started operations in India in September 2008. Its first year premium was down at ₹114.47 crore between April and October this fiscal and it commands a market share of 0.08 per cent.

Navi, Piramal Enterprises and Oaktree Capital declined to comment to an email query sent by BusinessLine. Paytm did not respond.

General insurance unit

Earlier this year, Navi had bought DHFL General Insurance from Wadhawan Global Capital at a reported ₹100 crore. Meanwhile, Paytm made its debut in the insurance sector with plans to acquire Raheja QBE General Insurance.

Published on November 12, 2020

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