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HDFC Life, Max Life merger to create India's largest private sector insurer

Livemint:  August 09, 2016

Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.

HDFC Life Insurance, Max Life seal three-step merger deal

The boards of HDFC Life Insurance Co. Ltd and Max Life Insurance Co. Ltd on Monday signed off on their merger, which will create India’s largest private sector insurer, Mintreported. Under the three-step merger process, Max Life will first combine with its parent Max Financial Services Ltd. In the next stage, the insurance unit will be demerged from this entity into HDFC Life. Finally, the non-insurance businesses of Max Financial will merge into group company Max India Ltd. The deal envisages shareholders of Max Life getting one share of Max Financial for every 4.98 shares of Max Life. In the second step, shareholders of Max Financial (after the amalgamation with Max Life) will get 2.33 shares of HDFC Life for each share they hold, said the statement.

If all the Max entities are considered as one set and HDFC Life as another set, then effectively “every share of HDFC Life costs around 2.25 shares of the merged Max Life and Max Financial entity”, said Amitabh Chaudhry, managing director and chief executive of HDFC Life. Mint was the first to report on Monday that shareholders of HDFC Life will get 24 shares of this expanded Max Financial for every 10 shares they hold.

Manappuram Finance looks to acquire microfinance companies

South India-based gold loan provider Manappuram Finance is on the prowl for acquisition of microfinance companies as it looks to grow its share of non-gold loans, riding on the sector’s success story, reported The Economic Times. Manappuram said it is currently in talks with a few entities in the north and east, but is yet to zero in on its preferred candidates. 

Salarpuria, Apollo form JV to buy out projects in Bengaluru, Vadodara

Global alternative asset manager Apollo Global Management Llc and realty firm Salarpuria Sattva Group have formed a joint venture to buy out 100% stake in two projects, in Bengaluru and Vadodara, from a consortium of offshore investors for Rs.275 crore.

The investment, done through Apollo Asia RE Singapore Pte Ltd (Apollo Asia Fund), is a partnership between the Bengaluru-based developer and the investment firm where both will invest equity capital and develop the projects. The two undeveloped land parcels include 10 acres near Malleswaram in Bengaluru and 18 acres in Vadodara. Both will be turned into residential projects.

Nifco to deploy Rs140-150 crore in four real estate projects

Mumbai-based Nisus Finance Services Co. Pvt. Ltd (Nifco), which manages a real estate investment fund, is looking to deploy around Rs.140-150 crore in four investments in the next six months through its proprietary investment product, reported Mint. “We currently have two deals in Mumbai and another two in Bengaluru that we are keen on. Across these four transactions we would be investing around Rs.120-140 crore. The investment could go up toRs.150 crore,” said Amit Goenka, managing director and chief executive at Nifco. The transactions are roughly in the range of Rs.30-35 crore, he added. The fund invests only in residential projects. The investments that Nifco is looking at will be made through its proprietary product called StruBB or structured buyback.

Indian Angel Network plans to raise Rs150 crore early stage fund

Indian Angel Network (IAN), one of the largest angel investor networks in the country, is raising an early-stage fund of around Rs.150 crore to co-invest along with its angel network, said two people aware of the development. “They have already registered a fund with the Securities and Exchange Board of India (Sebi) and are on the road to raise it. They are looking to raise at least Rs.150 crore for the fund. The fund will be raised from within their own network of angel investors,” said one of the two people cited above, requesting anonymity as the talks are private. IAN, which has more than 400 angel investors on its network, was founded in 2006. Apart from the angel investment network, IAN also runs several incubation programmes with various partners such as the National Science and Technology Entrepreneurship Development Board of the government of India, leading automotive tyre manufacturer Michelin and Small Industries Development Bank of India.


Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.