US private equity major Bain Capital is in advanced discussions to buy up to 25% stake in Indusind General Insurance in a deal that could value the insurer at Rs 16,000 crore or more, people familiar with the matter said.
The acquisition from Hinduja Group’s Mauritius-based investment arm IndusInd International Holdings (IL), if concluded, would mark Bain’s first direct bet in India’s general insurance sector.
Bain is expected to invest 74,000-5,000 crore for the stake, valuing the company 1.3-1.7 times its gross written premium (GWP) of around ₹212,000 crore, people cited said.
Bain has completed financial, legal and operational due diligence and the deal is expected to sign by August-end or early September.
Bain is said to see the investment as a medium to long term play. They see significant upside in the franchise according to ET.
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