IITL likely buyer of Future Group's insurance biz

The Future Group is all set to fasttrack the sale of its life insurance and non-life insurance business. CNBC-TV18's Kritika Saxena reports, quoting sources, that the IITL or Industrial Investment Trust Limited is a likely frontrunner to acquire Future Generali in a sale that will be structured in two parts. IITL is a large group with diverse interests in the financial services segment, real estate and construction.

The sale is likely to be in its final stages. The Future Group has structured the sale of its insurance business in two parts- the general insurance and life insurance businesses will be sold separately.
CNBC-TV18 has learnt that it is the sale of the general insurance business that is in the final stages and there is a lack of clarity about the buyer. However, as far as the life insurance business is concerned, IITL is a likely frontrunner among three bidders. The Future Group expects valuations at least Rs 1,100 crore from the sale of each of these businesses.
The sale will be phased out in two key stages. In the first stage, Pantaloon will sell around 50 percent of its stake in the life insurance business. The promoters, Kishore Biyani and family, will continue to own around 25 percent along with Generali’s stake. At a later date, the promoters will offer to sell the 25 percent separately.