Aditya Birla Group’s life insurance arm Birla Sun Life has joined the race to buy IDBI Federal Life Insurance by matching Max Life Insurance’s offer of more than Rs 6,000 crore, said two people aware of the development.
The sale process, which started over a year ago, has seen interest from several insurance companies and private equity funds.
“Birla Sun Life has matched the offer of Max Life Insurance for IDBI Federal Life Insurance,” said a source close to the development. “Max has been the most aggressive bidder so far, valuing the company at over Rs 6,000 crore.”
Investment bank JP Morgan has been appointed to shepherd the stake sale by IDBI Federal Life Insurance.
IDBI Federal distributes products through a multi-channel network. It had seen interest from nine companies that submitted bids: These included Kotak Life, Max Life Insurance and ExideNSE 5.98 % Life Insurance.