IndiaFirst Life Insurance (IFLI) has filed its draft pink herring prospectus with the market regulator, the Securities and Exchange Board of India (SEBI), for an preliminary public providing (IPO) that might elevate funds totalling INR20bn ($242.6m) to INR25bn.
The proposed IPO consists of a recent concern of fairness shares of as much as INR5bn and an offer-for-sale (OFS) of as much as 141,299,422 fairness shares. The latter lot of shares includes as much as 89,015,734 fairness shares owned by the promoter of the insurance firm, Bank of Baroda (BoB); 39,227,273 fairness shares held by Carmel Point Investments India; and 13,056,415 fairness shares owned by Union Bank of India.
BoB, which is India’s third largest public sector financial institution, holds a 65% stake within the firm adopted by Warburg Pincus affiliate Carmel Point Investments India (26%) and Union Bank of India (9%).
The IPO proceeds from the recent share issuance will likely be used to bolster the insurer’s capital base to help solvency ranges.
The fairness shares are proposed to be listed on the BSE and the NSE.
IFLI recorded the best five-year development by way of New Business Individual Rated Premium (IRP) amongst life insurers backed by state-owned banks between FY17 (fiscal 12 months ended 31 March 2017) and FY22 with a CAGR of 27.3%. The firm’s embedded worth elevated at a CAGR of 10.94% from INR16,812m in FY21 to INR18,650.1m in FY22. The firm posted a web lack of INR2,816.2m in FY22, whereas it registered a web revenue of INR301.9m in FY21.
IFLI would be the fourth private-sector life insurer to be listed on the bourses and general, the fifth life insurer to drift its shares. The different 4 are ICICI Prudential Life Insurance, SBI Life Insurance, HDFC Life Insurance, and Life Insurance Corporation of India.
