Central Bank of India Set to Acquire Future Enterprises’ Insurance Stakes

Central Bank of India is poised to acquire Future Enterprises’ stakes in 2 insurance joint ventures, Future Generali India Insurance Co. and Future Generali India Life Insurance Co. This move comes as the debt-ridden conglomerate undergoes insolvency proceedings.

The state-owned bank emerged as the preferred bidder for the insurance assets, out-competing other interested parties, including Capri Global, JC Flowers, and Authum. While these competitors expressed interest in acquiring the entire Future Enterprises, the Central Bank focused specifically on the insurance ventures.

Future Enterprises’ assets were divided into 3 clusters: insurance, textile businesses, and residual investments. The latter includes 2 manufacturing units and has attracted interest from Brescon Realty, Orissa Metaliks, and Uniworth Finlease.

The acquisition of the insurance stakes will bolster the Central Bank of India’s presence in the insurance sector, where it currently holds a minority stake. The deal follows the sale of Future Enterprises’ general insurance business to Generali in 2022, which resulted in a ₹1,266 crore recovery for lenders.

Insolvency proceedings against Future Enterprises were initiated after the conglomerate defaulted on a ₹25,000 crore loan. The ongoing resolution process aims to maximise creditors’ recovery and ensure a smooth transition of the company’s assets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.