IndiaFirst Life Insurance to file draft papers with Sebi in next few weeks

Bank of Baroda or BoB-backed IndiaFirst Life Insurance is all set to be the third insurance company to file draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) this year, after Life Insurance Corporation and Go Digit Insurance.

The private sector life insurer is likely to file its DRHP this month or early next month and may look to mop up around Rs 1,600 crore to Rs 2,000 crore from its IPO, people aware of the development said. The IPO could be a mix of primary issue and secondary share sale.

Among its existing investors, BoB has 65 per cent stake in the life insurer and Union Bank of India has 9 per cent stake. Carmel Point Investments India Private Limited, a body incorporated under the laws of Mauritius and owned by private equity funds managed by Warburg Pincus LLC, New York, United States, owns the remaining 26 per cent.

ICICI Securities, BNP Paribas, HSBC Securities, JM Financial, among others, are said to be the book runners for this share sale transaction of the company.

In its July board meeting, BoB had approved a 12.5 per cent stake dilution in IndiaFirst Life Insurance through the IPO. The bank, in a stock exchange notification, had stated that it does not want its stake in the insurance company to fall below 51 per cent.

An email sent to IndiaFirst Life Insurance did not elicit a response till the time of going to press.

IndiaFirst will be the fourth private sector life insurer to get listed on the bourses and overall, the fifth life insurer to go for an IPO. The other four are ICICI Prudential Life Insurance, SBI Life Insurance, HDFC Life Insurance, and Life Insurance Corporation of India.

Four other insurers in the general insurance space are also listed on the bourses -- namely ICICI Lombard General Insurance, New India Assurance, General Insurance Corporation, and Star Health & Allied Insurance.

IndiaFirst Life insurance entered the insurance industry in 2009 as the 23rd private sector life insurance company.

As of September 2022, IndiaFirst Life has 0.69 per cent market share in the life insurance space in terms of new business premiums. The company is ranked 11th in the pecking order and has earned a new business premium to the tune of Rs 1,257.62 crore as of September 2022. In FY22, it earned premiums to the tune of Rs 5,187 crores and had assets under management (AUM) of Rs 18,932 crores. The company offers a diversified suite of over 46 need-based products & riders catering to varied customer segments.