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Warburg Pincus may buy Andhra Bank's 20.5 per cent stake in India First

IBEF:  September 17, 2019

Private equity firm Warburg Pincus, which already owns a 26 per cent stake in IndiaFirst Life Insurance, is looking to buy another 20.5 per cent stake in the insurer from Andhra Bank, The Economic Times has reported.

"Warburg Pincus is in talks to buy a 20.5 per cent stake in India First Life Insurance from Andhra Bank. Andhra Bank is looking to sell a partial stake in the company," a person familiar with the deal was quoted as saying in the report. The deal, if finalised, will help Andhra Bank earn up to Rs 700 crore (US$ 100.16 million), said sources who were quoted in the report.

Analysts say this could be seen as a direct impact of the recently announced mega-mergers of 10 state-run banks into four. Currently, state-run lenders Bank of Baroda owns 44 per cent and Andhra Bank 30 per cent in the life insurer.

Carmel Point Investments India, a Mauritius-based company owned by private equity funds that Warburg Pincus LLC manages, bought 26 per cent stake in IndiaFirst for Rs 710 crore (US$ 101.59 million) in February, valuing the company at Rs 2,800 crore (US$ 400.63 million), said the report.


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