Bank of Baroda promoted IndiaFirst Life Insurance Company Ltd, which filed papers last year in October, has received approval from the Securities and Exchange Board of India (SEBI) to raise funds via initial public offering (IPO).
The public offering comprises of a fresh issue of equity shares worth to ₹500 crore and an offer-for-sale (OFS) of 141,299,422 equity shares by the promoter and selling shareholders.
About 89,015,734 equity shares will be offloaded by Bank of Baroda, 39,227,273 equity shares will be offered by Carmel Point Investments India Private Limited, and 13,056,415 equity shares will be offloaded by Union Bank of India.
The fresh issuance's proceeds will be used to increase the company's capital base and sustain solvency levels.
The company may consider a rights issue, preferential allotment, private placement, or other way to raise up to ₹100 crore in consultation with merchant bankers. The size of this fresh issue will be decreased if such placement is successful.
ICICI Securities Ltd, Ambit Private Ltd, BNP Paribas, BOB Capital Markets Ltd, HSBC Securities and Capital Markets (India) Private Ltd, Jefferies India Private Ltd and JM Financial Ltd are the book running lead managers and KFin Technologies Ltd is the registrar to the offer.
The equity shares are proposed to be listed on BSE and NSE.
According to the company's Draft Red Herring Prospectus (DRHP), IndiaFirst is supported by an extensive bancassurance network provided by Bank of Baroda and Union Bank, two of India's biggest public sector banks. As of June 30, 2022, it offered 29 retail products, comprising 9 participating products, 16 non-participating products (of which 11 non-participating savings products and six non-participating protection products) and 4 ULIPs, and 13 group products.