Investment company, Industrial Investment Trust Limited (IITL) has bought a 22.5% stake in Future Generali Life Insurance. CNBC-TV18's Mitra Joshi reports on the details and how much the Future group will get post the sale.
IITL has bought 22.5 percent stake from Pantaloon Retail and Future Group will get over Rs 300 crore from this deal. The deal values Future Generali's Life Insurance business over Rs 1200 crore.
Future Group will hold 52 percent stake post the sale and Italian Insurance Group, Generali holds 26 percent stake in this joint venture (JV). Pantaloon Retail currently holds 50 percent stake in Future Generali JV and the promoter group, Biyani family hold 24 percent stake in Future Generali JV. As of December 2012, the assets under management of Future Generali Life Insurance is around Rs 1926 crore.
Now, IITL is providing expert advice on investment portfolio and this deal will help IITL expand in financial services space as well. However, analysts say that this deal looks pretty expensive for IITL since insurance deal valuation counts only on new business.
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