INVESTORS SEEK EXIT FROM IDBI FEDERAL LIFE INSURANCE

IDBI Federal Life Insurance Co Ltd, a three-way joint venture between IDBI Bank, Federal Bank and Belgian insurer Ageas, is exploring the possibility of a 100% stake sale, which would potentially lead to a complete exit for all three stakeholders, two people directly aware of the matter said.

IDBI Federal has initiated the process of appointing investment banks to manage the sale and received proposals from Citibank and Credit Suisse, the people cited above said on condition of anonymity.

“The company is seeking a valuation upwards of ₹3,000 crore including a control premium,” said the first person mentioned above.

“Given that IDBI Federal has Bancassurance partners in IDBI Bank and Federal Bank, the sale is expected to attract significant buyer interest given the large captive customer base the company has” the second person said, adding that the company expects bids from all the major domestic insurers, especially those not promoted by banks.

An IDBI Federal spokesperson declined to comment. Emails sent to IDBI Bank and Federal Bank were not answered until press time. Citibank declined to comment and an email sent to Credit Suisse also remained unanswered until press time.

An Ageas spokesperson responded saying “we do not comment on market rumours.We are however in continuous dialogue with our partners about the development of our JV’s”.

In June, IDBI Bank, which owns 48% in the joint venture, said it would sell ₹5,000 crore of non-core assets this fiscal to reinforce capital.