Home Business Bank of Baroda backed insurance firm files documents for initial public offering

Bank of Baroda backed insurance firm files documents for initial public offering

BOB, India’s third largest PSU bank, holds 65 per cent stake in the company. (file)

New Delhi:

Bank of Baroda-promoted IndiaFirst Life Insurance has filed preliminary documents with capital markets regulator SEBI to raise funds through an initial public offering (IPO).

According to merchant banking sources, the size of the IPO could be between Rs 2,000 crore and Rs 2,500 crore.

As per the draft Red Herring Prospectus (DRHP), the public issue comprises fresh issue of equity shares up to Rs 500 crore and offer-for-sale (OFS) of 141,299,422 equity shares by the promoter and selling shareholders.

As a part of the OFS, Bank of Baroda (BOB) will sell 89,015,734 shares, Carmel Point Investments India will sell 39,227,273 shares and Union Bank of India will sell 13,056,415 shares.

India’s third largest PSU bank, BoB, holds 65 per cent stake in the company, followed by Warburg Pincus-affiliated Carmel Point Investments India with 26 per cent and Union Bank of India with 9 per cent.

The proceeds from the fresh issue of Rs 500 crore will be used to enhance its capital base to support solvency levels. The net premium earned by the Mumbai-headquartered insurance company grew by 27.80 per cent to Rs 4,985.21 crore for FY 2022 as against Rs 3,900.94 crore in FY21.

The embedded value of the firm grew at a CAGR of 11 per cent from Rs 1681.20 crore in FY11 to Rs 1,865.01 crore in FY22. As of June this year, it had 1,634 individual agents and 21 corporate agents.

ICICI Securities, Ambit, BNP Paribas, BOB Capital Markets Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, Jefferies India and JM Financial are the book running lead managers to the issue.

Equity shares are proposed to be listed on BSE and NSE.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)


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