IndiaFirst Life Insurance gets SEBI approval to float IPO

Bank of Baroda-promoted IndiaFirst Life Insurance has received final observation from the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

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 the promoter and other selling shareholders.

Bank of Baroda will offload about 89,015,734 equity shares, while Carmel Point Investments will tender 39,227,273 equity shares and 13,056,415 equity shares will be offloaded by Union Bank of India.

The company, which had filed preliminary IPO papers with Sebi on October 21 last year, may also consider a private placement, preferential allotment, rights issue and other methods to raise funds 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 crore will be used towards augmentation of its capital base to support solvency levels.

IndiaFirst Life Insurance Company 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.

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, comprising of which 9 participating products, 16 non-participating products (of which 11 non-participating savings products and six non-participating protection products) and 4 ULIPs, it also has 13 group products.

As on June 30, 2022, it had 58,610 retail product policies in force and 13,47,856 lives covered by group policies.

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.