New Delhi: IndiaFirst Life Insurance has filed its draft red herring prospectus (DRHP) with the capital markets regulator Sebi to launch its initial public offering (IPO, Promoted IndiaFirst Life Insurance Company is a private life insurance player. The Mumbai-based company is among the fastest-growing private life insurers in terms of new business-insured retirement plan.

According to the DRHP, the issue includes a fresh issue of up to Rs 500 crore along with an offer for sale of up to 14,12,99,422 equity shares by the promoters and existing shareholders of the company.

Bank of Baroda will sell 8,90,15,734 equity shares, whereas

will sell 1,30,56,415 equity shares in the OFS. Carmel Point Investments India would offload 3,92,27,273 equity shares during the primary stake sale.

Bank of Baroda, India’s third largest PSU bank holds a 65% stake in the company followed by Warburg Pincus affiliate Carmel Point Investments India which holds 26% and Union Bank of India which holds a 9% stake.

The company, in consultation with merchant bankers, may consider a private placement on a preferential basis or a rights issue aggregating up to Rs 100 crore. If such a placement is completed, the fresh issue size will be reduced.

The net proceeds from the fresh issuance worth Rs 500 crore will be used towards augmentation of its capital base to support solvency levels.

After Life Insurance Corporation of India (LIC) and Go Digit, IndiaFirst Life became the third insurance player to file its draft papers this year with Sebi to float an IPO.

Despite being a highly under-penetrated sector, India’s life insurance industry is the ninth-largest in the world and the fourth-largest in Asia in terms of life insurance premiums.

Qualified institutional bidders have 75% of the equity shares reserved for them, whereas non-institutional investors’ quota is fixed at 15%. The remaining 10% of shares will be reserved for retail bidders.

IndiaFirst Life is supported by an extensive bancassurance network provided by Bank of Baroda and Union Bank, two of India’s biggest public sector banks.

Ambit, , BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India and are the book-running lead managers and KFin Technologies is the registrar to the offer.


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By Dipak

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