Over eight months after signing a deal to acquire 26 percent in Indiafirst Life Insurance for Rs 710 crore, global private equity major Warburg Pincus has concluded the transaction.
This is the first deal wherein a private equity fund has taken an interest in a life insurance.
The deal got fructified after getting requisite approvals from Insurance Regulatory and Development Authority of India, along with other regulatory agreements, an official statement said.
The transfer process was completed last Thursday wherein Legal and General's over 26 percent stake in the venture was sold to Carmel Point Investments India, which is incorporated by Carmel Point Investment, a body incorporated under the laws of Mauritius, it said.
Though the deal value was undisclosed, sources close to the matter said the private equity fund has paid Rs 710 crore for buying the 26 percent stake from British financial services entity, Legal and General.
State-run lenders Bank of Baroda (44 percent) and Andhra Bank (30 percent) are other shareholders of the 2010- incorporated company.
The statement said Indiafirst has been profitable for the last four years and registered a post tax net of Rs 51 crore in fiscal year 2017-18.
"The shareholding banks' continued support, together CPIIPL, is set to reinvigorate and lend fillip to the organisation's plans," the statement said.