Bank of Baroda or BoB-backed IndiaFirst Life Insurance has filed its draft purple herring prospectus with the markets regulator Securities and Exchange Board of India (Sebi) for an preliminary public providing (IPO) this yr, which is able to encompass a contemporary subject of Rs 500 crore and a suggestion for sale of 141.2 million shares.
IndiaFirst Life is the third insurer after Life Insurance Corporation and Go Digit Insurance to file draft papers for an IPO with the markets regulator this yr.
Promoters Bank of Baroda (BoB) and Carmel Point Investments Pvt Ltd will promote 89 million shares and 39.22 million shares, respectively, within the provide for sale. Union Bank of India will promote 13.05 million shares within the share sale course of.
The insurer will use the proceeds from the contemporary subject to reinforce its capital base to help solvency ranges. Further, the proceeds from the contemporary Issue can even be used in the direction of assembly the bills in relation to the Offer.
BoB has a 65 per cent stake within the life insurer and Union Bank of India has a 9 per cent stake. Carmel Point Investments India Private Limited, a physique integrated underneath the legal guidelines of Mauritius and owned by personal fairness funds managed by Warburg Pincus LLC, New York, United States, owns the remaining 26 per cent.
The firm reported a internet lack of Rs 41 crore in Q1FY23 and Rs 281.6 crore in FY22. However, it had earned a revenue of Rs 30.89 crore in FY21.
In Q1FY23, the insurer earned a brand new business premium of Rs 501 crore and renewal premium of Rs 406.92 crore. Its belongings underneath administration (AUM) was to the tune of Rs 18,637 crore. It maintained a solvency ratio of 166 per cent, as in opposition to the regulatory requirement of 150 per cent.
ICICI Securities, BNP Paribas, HSBC Securities, JM Financial, amongst others, are stated to be the e-book runners for this share sale transaction of the corporate.
IndiaFirst would be the fourth personal sector life insurer to get listed on the bourses and total, the fifth life insurer to go for an IPO. The different 4 are ICICI Prudential Life Insurance, SBI Life Insurance, HDFC Life Insurance, and Life Insurance Corporation of India.
Four different insurers within the common insurance area are additionally listed on the bourses — specifically ICICI Lombard General Insurance, New India Assurance, General Insurance Corporation, and Star Health & Allied Insurance.
