The state bank is likely to take over Companies of the future‘ 25% stake in Future Generali India Insurance Co. and a 33% stake in Future Generali India Life Insurance Co., according to people familiar with the matter. acquisition The move comes as the bank seeks to increase its presence in the insurance sector, where it currently holds a minority stake.
Future Enterprises’ lenders had divided the company’s assets into three groups: insurance companies, textile businesses and other residual holdings.
“The Central Bank’s offer has been accepted by the creditors’ committee and will be announced this week,” said one source.
Italy’s Generali, which owns 74 percent of the joint ventures, wanted to partner with a public sector lender, which will help expand distribution, the source said.
The Central Bank’s spokesperson and Future Enterprises’ resolution professional (RP) could not be immediately reached for comment. The Central Bank has emerged as the front-runner after outbidding several contenders, including Capri GlobalJC Flowers and Authum. While Authum, Capri and JC Flowers had shown interest in acquiring all of Future Enterprises’ assets, the Central Bank focused solely on the Insurance participationsBesides the central bank, M Pallonji & Co., Kotak Alternate Asset and Globe Capital had also shown interest in the insurance stakes.
Brescon Realty, Orissa Metaliks and Uniworth Finlease were among the bidders for the third batch, which includes all the company’s residual investments, including the two manufacturing units at Tarapur in Maharashtra’s Palghar district and Mahadevapura, a suburb of Bengaluru.
Future Enterprises, part of the larger Future Group, was forced into insolvency after defaulting on loans worth ₹25,000 crore.
In 2022, lenders secured Rs 1,266 crore from Future Enterprises after the group completed the sale of its general insurance business to Generali. After the stake sale, Generali owns 74% of the general insurance company, the highest permissible foreign direct investment.
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