IndiaFirst Life insurance files draft papers to raise funds via IPO

New Delhi: IndiaFirst Life Insurance, promoted by Bank of Baroda has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial public offering (IPO).

According to merchant banking sources, the IPO size could be between Rs 2,000 crores and Rs 2,500 crores.

The public issue consists of a fresh issue of equity shares worth up to Rs 500 crores and an offer-for-sale (OFS) of up to 141,299,422 equity shares by promoter and selling shareholders, as per the draft red herring prospectus (DRHP).

As a part of the OFS, Bank of Baroda (BOB) would sell 89,015,734 shares, Carmel Point Investments India would offload 39,227,273 shares and Union Bank of India would divest 13,056,415 shares.

BOB holds 65 percent stake in the company, followed by Warburg Pincus affiliate Carmel Point Investments India that owns 26 percent stake and Union Bank of India that has 9 percent shareholding.

Proceeds from the fresh issuance worth Rs 500 crores will be used towards augmentation of its capital base to support solvency levels.

Net premiums earned by the Mumbai-headquartered insurance company increased by 27.80 percent to Rs 4,985.21 crores for the financial year 2022 from Rs 3,900.94 crores in FY 2021.

The firm's embedded value increased at a CAGR of 11 percent from Rs 1,681.20 crores in FY21 to Rs 1,865.01 crores in FY 22.

As of June this year, the insurance company had 1,634 individual agents and 21 corporate agents.

ICICI Securities, Ambit, BNP Paribas, BOB Capital Markets Limited, HSBC Securities and Capital Markets (India) Private Limited, Jefferies India, and JM Financial are the book running lead managers to the issue.

The equity shares are proposed to be listed on BSE and NSE.

(With PTI inputs)

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