India First Life Insurance, which is backed by Bank of Baroda, has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The company plans to raise funds through the IPO to support its growth and expansion plans. India First Life Insurance is a joint venture between Bank of Baroda, Andhra Bank, and Legal & General. The company offers a range of life insurance products, including term insurance, savings plans, and retirement plans. The IPO will provide an opportunity for investors to invest in the growing insurance sector in India and benefit from the potential growth opportunities in the industry. The exact timeline and size of the IPO are yet to be announced.
The business, which is sponsored by Bank of Baroda, submitted its Draft Red Herring Prospectus (DRHP) to SEBI in October of last year in preparation for its IPO.
The offer for sale (OFS) of 141,299,422 equity shares by the promoter and other selling shareholders constitutes a public issue, according to the DRHP, along with a fresh issue of 500 crore equity shares.
BoB will sell around 89,015,734 equity shares, Carmel Point Investments will sell about 39,227,273 equity shares, and United Bank of India will sell about 13,056,415 equity shares.
BoB, the third-largest PSU bank in the nation, owns 65% of the company, followed by Warburg Pincus affiliate Carmel Point Investments India with 26% and Union Bank of India with 9%.
IndiaFirst Life filed its draft papers with SEBI on October 21 of last year to launch an IPO, joining Life Insurance Corporation of India (LIC) and Go Digit as the previous insurance companies to do so.
The book-running lead managers for the offer include ICICI Securities, Ambit, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India, and JM Financial. Kefin Technologies is the offer’s registrar.
Private life insurance provider IndiaFirst Life Insurance Company is supported by Bank of Baroda. In terms of new business-insured retirement plans, the Mumbai-based company is among the private life insurance providers with the quickest growth.
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