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Manulife eyes majority stake in IDBI Federal; Shapoorji’s solar portfolio on sale

08 February, 2018

Canada’s Manulife Life Insurance Company has emerged as a frontrunner for a majority stake in India-based IDBI Federal Life Insurance Company Ltd for about $550-650 million (Rs 3,529-4,171 crore), The Economic Times reported, citing people aware of the development.

IDBI Federal Life Insurance is a joint venture of state-run lender IDBI Bank Ltd, Kerala-based Federal Bank Ltd and Belgium’s Ageas Insurance International NV. IDBI Bank holds 48% stake in the joint venture while Federal Bank and Ageas own 26% each.

Other bidders in the fray are local insurers HDFC Standard Life Insurance Company, Birla Sun Life Insurance Company, and others, the report said.

A source was cited as saying the joint venture had received eight to nine “indicative offers” and the stake-purchase deal could come about by March-end.

The joint-venture insurance company had started operations in March 2008. For 2016-17, the firm had posted a net profit of Rs 5 crore.

The development comes after IDBI Bank’s board, in February 2017, gave an in-principle approval to sell non-core assets.

In another development, conglomerate Shapoorji Pallonji Group is looking to sell all its solar power assets of capacity more than 400 megawatts for close to Rs 1,200 crore, Mint reported, citing two people aware of the development.

Financial services company Credit Suisse is tasked with finding a buyer, the report added.

A source was cited as saying the Shapoorji Pallonji group is in talks with potential buyers.

A recent report by credit rating agency ICRA shows that Shapoorji Pallonji Solar Holdings Pvt. Ltd’s projects are spread across Tamil Nadu, Telangana, Rajasthan and Maharashtra.

Shapoorji Pallonji Infrastructure Capital Company Pvt. Ltd has confirmed the development to the financial news organisation.

Meanwhile, in an IPO move, Ravi Kant Jaipuria-led RJ Corp Ltd, that engages in bottling and fast food, is looking to list Devyani International Pvt. Ltd by next year, Business Standard reported.

Devyani, which engages in fast food, holds franchisee rights for brands like KFC, Pizza Hut and Costa Coffee in India. It also operates its own south Indian restaurant chain by the name of Vaango.

Jaipuria told the financial daily he expects to raise over Rs 1,100 crore through the IPO or initial public offering.

The company currently operates more than 450 stores in 12 states; it will add 100 stores in 2018, according to the report.

“Till now, we are meeting most of the investments from internal accruals, and expanding at that rate will be tough without an IPO,” Jaipuria said.

For the year through March 2017, the company’s consolidated net sales stood at Rs 1,049.8 crore and the loss after tax was Rs 135.3 crore, according to VCCEdge, the data research platform of VCCircle.

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Manulife eyes majority stake in IDBI Federal; Shapoorji’s solar portfolio on sale

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