Combo – Rs 500 Fresh Issue, OFS By Investors
IndiaFirst will use the funds raised for strengthening its capital base to support solvency levels
MUMBAI, Mar 21 (The CONNECT) – Bank of Baroda–promoted IndiaFirst Life Insurance Company Limited has received final observations from the capital markets regulator, Securities and Exchange Board of India (SEBI), for its initial public offering (IPO).
The Mumbai-based insurer is one the fastest growing private life insurers in the country in terms of new business IRP in fiscal 2022.
The company had its draft red herring prospectus with Sebi on October 21, last year. The public issue consists of a fresh issue of equity shares worth up to Rs 500 crore and an offer-for-sale (OFS) up to 141,299,422 equity shares by Promoter and selling shareholders.
Bank of Baroda will offload about 89,015,734 equity shares, while Carmel Point Investments India Private Limited will tender 39,227,273 shares and by Union Bank of India will sell 13,056,415 equity shares of IndiaFirst.
IndiaFirst had Bank of Baroda, Andhra Bank (now, Union Bank of India) and Legal & General Middle East Limited as the initial shareholders. Legal & General Middle East Limited sold its stake in February 2019 to Carmel Point Investments India Private Limited, affiliate of the Warburg Pincus Group. In April 2020, Andhra Bank was amalgamated into The Union Bank of India. The shareholding pattern currently stands at: Bank of Baroda – 65%, Union Bank of India – 9% and Carmel Point Investments India Private Limited – 26%.
The company in consultation with merchant bankers to the issue – 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 – may consider a private placement, preferential allotment, rights issue such other method aggregating up to Rs. 100 crore and the fresh issue size will be reduced to that extent.
KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
The proceeds from the fresh issuance worth Rs 500 crores will be used towards augmentation of its capital base to support solvency levels.
IndiaFirst Life Insurance Company Limited 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.
The organization is chaired by Sanjiv Chadha, Chairman and Non-Executive Director (nominee of Bank of Baroda). The key management team members include Vishakha R M, Managing Director and Chief Executive Officer and Rushabh Gandhi, Deputy CEO.
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. On the group products front, it had introduced 17 products (including group term life products, group credit life products and riders). As on June 30,2022 it had 58,610 retail product policies in force and 13,47,856 lives covered by group policies, It helps its customers in savings, career and marriage besides retirement planning and asset drawdown.
