IndiaFirst Life Insurance Company (IndiaFirst) has received final observation from the capital markets regulator securities and exchange board of India (Sebi) to launch its initial public offering (IPO).
Bank of Baroda promoted IndiaFirst has filed its draft papers in October 2021. The Mumbai-based life insurance company is a private life insurer and is a leading name in terms of new business-insured retirement plan (IRP) for the financial year 2021-22.
According to the draft papers, the public issue consists of a fresh issue of equity shares worth up to Rs 500 crore and an offer-for-sale (OFS) of up to 141,299,422 equity shares by its promoter and existing shareholders.
Bank of Baroda will offload about 89,015,734 equity shares, while Carmel Point Investments India will tender 39,227,273 equity shares and 13,056,415 equity shares will be offloaded by Union Bank of India.
The company in consultation with merchant bankers of the issue may consider a private placement, preferential allotment, rights issue such other methods aggregating up to Rs 100 crore. If such placement is completed, the fresh issue size will be reduced.
The proceeds from the fresh issuance worth Rs 500 crores will be used towards augmentation of its capital base to support solvency levels, the company said.
IndiaFirst Life Insurance recorded its highest five-year growth in terms of New Business Individual Rated Premium (IRP) amongst life insurers with PSU bank percentage, with a CAGR of 27.3 per cent between the fiscal year 2017-2022.
IndiaFirst is supported by an extensive bancassurance network provided by Bank of Baroda and Union Bank, two of India’s biggest public sector banks. As of June 30, 2022 it offered 29 retail products, of which 9 participating products, 16 non-participating products and 4 ULIPs, it also has 13 group products.
ICICI Securities, Ambit Capital, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India and JM Financial are the book-running lead managers, whereas KFin Technologies is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
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