The non-public fairness agency has approached greater than a dozen potential patrons, together with world strategic buyers and personal fairness funds, because it seeks to exit its 7-year-old funding, the individuals mentioned.
Barclays has the mandate for the deal.
The discussions, which started in September, have gained momentum following the latest itemizing of one other mid-sized life insurer, Canara HSBC Life. This itemizing has supplied a recent benchmark for valuations.
Bids are anticipated within the first week of December, with the transaction more likely to be signed by the tip of March 2026, mentioned the individuals cited above.
Warburg invested in IndiaFirst Life in 2018 and has been exploring an exit for over a yr. A earlier try to listing the corporate was deferred amid unstable market situations. The insurer had earlier filed for an preliminary public providing comprising a recent difficulty of fairness shares value as much as ₹500 crore and a suggestion on the market by present shareholders. Though the capital-markets regulator had cleared the IPO proposal, the problem was placed on maintain. The present course of is geared toward an entire exit, and the brand new purchaser will turn out to be a big minority shareholder alongside Financial institution of Baroda and Union Financial institution of India, which collectively personal a controlling stake within the insurance coverage enterprise.
As of March 31, 2025, Financial institution of Baroda, Carmel Level Investments India Pvt Ltd (an affiliate of Warburg Pincus), and Union Financial institution held 64.98%, 25.99%, and 9% in IndiaFirst Life, respectively, with Financial institution of Baroda and Carmel Level being the promoters.
“Curiosity within the sale has come primarily from abroad buyers trying to develop their presence in India’s insurance coverage sector, which is rising in double digits and stays underpenetrated in comparison with different main Asian markets,” mentioned one of many individuals. “Home insurers have proven restricted participation within the present course of.”
Abroad firms are legally allowed to come clean with 74% in Indian insurance coverage companies, though there’s a pending proposal that seeks to reinforce the possession restrict to 100%.
Companiespegs Valuation of Insurer at ₹10,000 cr
Valuations Beneath Lens
Warburg’s exit might check investor urge for food in India’s life insurance coverage sector, the place valuations have been underneath scrutiny following muted post-listing performances. Canara HSBC acquired listed at 1.6 occasions EV a number of towards different listed gamers HDFC Life and SBI Life at 2.9 occasions and a couple of.5 occasions, respectively.
Spokespersons of Warburg Pincus, Barclays, and IndiaFirst Life didn’t instantly reply to requests for a remark.
If accomplished, the deal would rank among the many largest secondary transactions in India’s insurance coverage trade lately. The ultimate valuation might range relying on investor urge for food and regulatory approvals, one other individual mentioned.
