The private equity firm has approached more than a dozen potential buyers, including global strategic investors and private equity funds, as it seeks to exit its 7-year-old investment, the people said.
Barclays has the mandate for the deal.
The discussions, which began in September, have gained momentum following the recent listing of another mid-sized life insurer, Canara HSBC Life. This listing has provided a fresh benchmark for valuations.
Bids are expected in the first week of December, with the transaction likely to be signed by the end of March 2026, said the people cited above.
Warburg invested in IndiaFirst Life in 2018 and has been exploring an exit for over a year. A previous attempt to list the company was deferred amid volatile market conditions. The insurer had earlier filed for an initial public offering comprising a fresh issue of equity shares worth up to ₹500 crore and an offer for sale by existing shareholders. Although the capital-markets regulator had cleared the IPO proposal, the issue was put on hold. The current process is aimed at a complete exit, and the new buyer will become a significant minority shareholder alongside Bank of Baroda and Union Bank of India, which together own a controlling stake in the insurance business.
As of March 31, 2025, Bank of Baroda, Carmel Point Investments India Pvt Ltd (an affiliate of Warburg Pincus), and Union Bank held 64.98%, 25.99%, and 9% in IndiaFirst Life, respectively, with Bank of Baroda and Carmel Point being the promoters.
“Interest in the sale has come mainly from overseas investors looking to expand their presence in India’s insurance sector, which is growing in double digits and remains underpenetrated compared to other major Asian markets,” said one of the people. “Domestic insurers have shown limited participation in the current process.”
Overseas companies are legally allowed to own up to 74% in Indian insurance businesses, although there is a pending proposal that seeks to enhance the ownership limit to 100%.
Agenciespegs Valuation of Insurer at ₹10,000 cr
Valuations Under Lens
Warburg’s exit could test investor appetite in India’s life insurance sector, where valuations have been under scrutiny following muted post-listing performances. Canara HSBC got listed at 1.6 times EV multiple against other listed players HDFC Life and SBI Life at 2.9 times and 2.5 times, respectively.
Spokespersons of Warburg Pincus, Barclays, and IndiaFirst Life did not immediately respond to requests for a comment.
If completed, the deal would rank among the largest secondary transactions in India’s insurance industry in recent years. The final valuation could vary depending on investor appetite and regulatory approvals, another person said.
