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IndiaFirst Life Insurance, promoted by Bank of Baroda, has received the Securities and Exchange Board of India’s (SEBI) approval to raise funds through an initial public offering (IPO).
The life insurer had in October 2022 sought approval for the public issue, which consists of a fresh issue of equity shares worth up to Rs 500 crore and an offer-for-sale (OFS) of up to 14.1 crore shares by the promoter and selling shareholders.
Bank of Baroda will offload about 8.9 crore shares, Carmel Point Investments India will tender 3.9 crore shares, and Union Bank of India another 1.3 crore shares.
IndiaFirst Life, may in consultation with merchant bankers, consider a private placement, preferential allotment, rights issue or any such other method aggregating up to Rs 100 crore before the IPO, in which case the fresh issue size will be reduced.
Also read: Union Bank sells 21% stake in life insurance arm to jt venture partner BoB for ₹766 cr
The proceeds from the fresh issue will be used towards augmenting the capital base to support solvency levels, the insurer said.
The Mumbai-based insurer is one of the fastest growing private life insurers in the country in terms of new business Individual Rated Premium (IRP) in FY22. It recorded its highest five-year growth in terms of New Business Individual Rated Premium (IRP) with a CAGR (compounded annual growth rate) of 27.3 per cent between FY17 and FY22.
As of June 2022, the life insurer offered 29 retail products comprising nine participating products and 16 non-participating products, of which 11 are savings products, six protection products, 4 ULIPs (unit-linked insurance plans) and 13 group products. It has about 58,610 retail product policies in force and 13.5 lakh lives covered by group policies.
ICICI Securities, Ambit Private, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India, and JM Financial are the book-running lead managers to the IPO, and KFin Technologies is the registrar to the offer.
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