India-based Bank of Baroda is set to trim its holding in its insurance subsidiary IndiaFirst Life Insurance Company, reported Livemint.

The Indian lender plans to offload up to 12.50% holding in IndiaFirst through an offer for sale in the initial public offer of the insurer or any other means permissible under applicable law.

The move, approved by the bank’s board of directors, is subject to market conditions and statutory approvals.

According to Bank of Baroda said in a regulatory filing, the bank will ensure that it’s holding in IndiaFirst does not slip below 51% of the current paid-up equity of the insurance firm.

Mumbai-based IndiaFirst was a joint venture between Bank of Baroda, Carmel Point Investments India, and Union Bank of India.

Last year, the bank increased its stake in IndiaFirst to 65% after purchasing an additional 21% holding from the Union Bank of India.

Carmel Point Investments India, which is owned by private equity funds managed by Warburg Pincus, holds a 26% stake in IndiaFirst.

Union Bank of India is the company’s third strategic partner with 9% stake in the insurer. The bank purchased its holdings in the insurance firm by way of the merger of Andhra Bank into it in April 2020.

As of 31 March 2022, IndiaFirst had assets under management (AuM) of $2.3bn.

In May, UK-based insurance broker Howden secured the regulatory green light to raise its shareholding in Howden Insurance Brokers India from 49% to 100%.