Among the possible investors, with whom discussions are underway, are Chinese internet giant Tencent and Japan’s SoftBank Vision Fund
New York-based hedge fund Tiger Global Management is eyeing a $1.5 billion valuation for its 21 percent stake sale in Etechaces, which owns PolicyBazaar and Paisabazaar, The Times of India reports. Sources told the paper that the investment firm has pegged the deal size at $300 million.
Moneycontrol could not independently verify the report.
Among the possible suitors are Chinese internet giant Tencent and Japan’s SoftBank Vision Fund. SoftBank had invested in the company last year at a $1 billion valuation, but the secondary sale is expected to be valued higher than that.
Since 2014, Tiger Global has invested around $50-60 million in Etechaces across several rounds. The proposed stake sale would therefore mean another bumper exit for the company. Last year, it earned over $3 billion following its exit from e-commerce giant Flipkart. This was followed by a partial exit from ride-hailing major Ola earlier this year.
“Tiger Global has appointed a banker for the stake sale and Tencent is likely to come in as a new investor. SoftBank may also increase its stake to about 20 percent in the company,” a source told TOI.The stake sale comes at a time when FDI norms in the country have been altered, the move being aimed at increasing insurance penetration across the country. On July 5, Finance Minister Nirmala Sitharaman announced that 100 percent foreign direct investment would now be allowed in insurance intermediaries from the 49 percent cap earlier.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.