Private sector life insurer IndiaFirst Life Insurance has filed its draft crimson herring prospectus (DRHP) with capital market regulator Sebi to launch an preliminary public providing (IPO).
The IPO of the Bank of Baroda-promoted insurance firm will consist of a contemporary challenge of up to Rs 500 crore and a proposal on the market (OPS) of up to 141.29 million fairness shares by the promoters and present shareholders.
According to the DRHP, promoters Bank of Baroda and Carmel Point Investments India will promote up to round 89 million shares and round 39 million shares, respectively, within the OFS. Union Bank of India will offload round 13 million shares throughout the main stake sale.
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At current, BoB, Carmel Point Investments and Union Bank of India have 65%, 26% and 9% stakes within the Mumbai-headquartered insurance firm.
The insurance firm proposes to utilise the online proceeds from the contemporary challenge in the direction of augmentation of its capital base to assist solvency ranges. “Further, the proceeds from the fresh issue will also be used towards meeting the expenses in relation to the offer. In addition, our company expects to receive the benefits of listing of the equity shares on the stock exchanges, including enhancement of our company’s brand name and creation of a public market for our equity shares in India,” IndiaFirst Life Insurance stated.
The firm posted a web loss of Rs 281.62 crore in FY22, whereas it registered a web revenue of Rs 30.19 crore in FY21.
ICICI Securities, Ambit Private Limited, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India and JM Financial are the e-book working lead managers.
