In the IPO, Bank of Baroda will offload about 8.9 crore equity shares and 1.3 crore equity shares will be sold by Union Bank of India.
Life insurance major IndiaFirst Life Insurance Company received final approval from Securities and Exchange Board of India (Sebi) to float an initial public offering to raise funds. The issue will comprise a fresh issue of equity shares worth Rs 500 crore and an offer-for-sale (OFS) up to 14.1 crore equity shares from promoters and stakeholders. The insurance company is owned by two of India’s largest PSU banks, Bank of Baroda and Union Bank of India. Additionally, Carmel Point Investments India, owned by private equity funds managed by Warburg Pincus, bought a stake in the life insurance firm.
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In the OFS component of the IPO, Bank of Baroda will offload about 8.9 crore equity shares, while Carmel Point Investments India Private Limited will tender 3.9 crore equity shares and 1.3 crore equity shares will be sold by Union Bank of India. Additionally, the firm may consider a private placement, preferential allotment, rights issue or such other methods which would aggregate up to Rs 100 crore. Based on the success of these mediums, the size of the fresh issue would be reduced or reworked.
IndiaFirst Life was founded in 2009. With a paid-up share capital of Rs 663 crore, is one of the country’s youngest life insurance companies. The Mumbai-based insurer is one the fastest growing private life insurers in the country in terms of new business-insured retirement plan in FY2022. The insurance firm 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% between fiscal 2017 to fiscal 2022.
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ICICI Securities Limited, Ambit Private Limited, BNP Paribas, BOB Capital Markets Limited, HSBC Securities and Capital Markets (India) Private Limited, Jefferies India Private Limited and JM Financial Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
