ICICI Pru Life, HDFC Life, RARE Enterprises in final race to acquire stake in IDBI Federal Life Insurance

ICICI Prudential Life Insurance Company, HDFC Life Insurance Company Ltd, RARE Enterprises are in final race to acquire stake in IDBI Federal Life Insurance.

IDBI Federal Life is still on the block as far as sale of the life insurance entity is concerned. Non-binding bids from three companies – HDFC Life Insurance Company Ltd, ICICI Prudential Life Insurance Company and Rakesh Jhunjhunwala’s private equity firm RARE Enterprises have been selected to acquire 100 percent stake in IDBI Federal Life Insurance.

About 48 percent of IDBI Federal Life Insurance is owned by IDBI Bank, 26 percent is owned by Federal Bank and balance 26 percent is owned by Belgian insurance company, Aegis Insurance. So, all three parts are up on the block and non-binding bids for them have been selected.

There were a total 6 non-binding bids that had come from Bharti AXA General Insurance, Kotak Life Insurance, Kedaara Capital, RARE Enterprises, ICICI Prudential Life Insurance Company and HDFC Life Insurance Company Ltd.

As far as valuation aspect is concerned, the embedded value or EV for IDBI Federal Life stands at about Rs 1,850-1,900 crore and the bids have also come at around the same price. So the valuation at which this transaction is being talked about is the same as the EV that is about Rs 1,800-1,900 crore.