Jobaaj Stories
IndiaFirst Life Insurance, promoted by the Bank of Baroda, has filed it's Draft Red Herring Prospectus (DRHP) with capital markets regulator SEBI, seeking approval to float its IPO.
The Mumbai-based Insurance company is one of India's youngest life insurance companies. It began operations in 2009 and offers a broad range of plans such as Term plans, Investment plans, Savings plans, micro life insurance plans, child plans, etc. In FY22, the company had a total premium collection of Rs 5,187 crores and around Rs 18,932 crores in Assets Under Management.
The company has three shareholders: Bank of Baroda (65%), Union Bank of India (9%) & Carmel Point Investments (26%), an affiliate of Warburg Pincus. It has a 5-year CAGR of 27%, which was almost 2.6 times higher than the industry average!
L&T infotech Q2 results are live, read more.
According to the DRHP of the private life insurance company, the public issue will be a combination of fresh issue and OFS where BoB will be offloading 8.9 crore shares, Carmel point 3.9 crores & Union Bank 1.3 crore shares. Therefore, the OFS will be for 14.12 crore shares while the fresh issue for Rs 500 crore.
The company will be using the funds to improve its capital base to support solvency levels. Moreover, the funds will also be used to meet the expenses relating to the offer.
Unlike other IPOs, 75% of the entire issue will be reserved for institutional investors. 15% will be reserved for HNIs while only the remaining 10% will be available to retail investors. The company is also reportedly said to be in discussion with its bankers for a private placement/rights issue to the tune of Rs 100 crores. If the same is followed through, the fresh issue will be reduced.
ICICI Securities, Ambit, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets, Jefferies India, and JM Financial are the book-running lead managers for the issue while KFin Technologies is the registrar to the offer.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
