The insurance regulator has given the green light to Go Digit General Insurance for a listing on stock markets.
In a note released last week, the IRDAI said, “Also, in-principle approval to IndiaFirst Life Insurance Company Limited has also been provided for a listing.”
Go Digit, an online insurer that is part of the Canada-based Fairfax Group, filed preliminary IPO papers with the capital markets regulator, the Securities and Exchange Board of India, on 17 August. The proposed IPO comprises the fresh issuance of equity shares worth INR12.5bn ($153.7m) and an offer for sale of 109.4m equity shares by a promoter and existing shareholders.
IndiaFirst Life Insurance, backed by state-owned lenders Bank of Baroda (65% stake), Union Bank of India (9%) and private equity firm Warburg Pincus (26%), could launch an offer for sale of shares owned by investors of the company. The IPO size could be as much as INR20bn.
In other developments, the IRDAI announced that it has approved the merger of Exide Life Insurance with HDFC Life Insurance.
The registration of Kshema General Insurance was also approved. The new insurer will soon start its operations.