The public issue consists of a fresh issue of equity shares worth up to Rs 500 crore and an offer-for-sale (OFS) up to 141,299,422 equity shares by promoter and selling shareholders
Bank of Baroda will offload about 89,015,734 equity shares, while Carmel Point Investments India Private Limited will tender 39,227,273 equity shares and 13,056,415 equity shares will be offloaded by Union Bank of India
Mumbai:
Bancassurance major IndiaFirst Life Insurance has received approvals from the capital markets regulator Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The public issue consists of a fresh issue of equity shares worth up to Rs 500 crore and an offer-for-sale (OFS) up to 141,299,422 equity shares by promoter and selling shareholders.
Bank of Baroda will offload about 89,015,734 equity shares, while Carmel Point Investments India Private Limited will tender 39,227,273 equity shares and 13,056,415 equity shares will be offloaded by Union Bank of India.
The proceeds from the fresh issuance worth Rs 500 crores will be used towards augmentation of its capital base to support solvency levels.
The company in consultation with merchant bankers to the IPO may consider a private placement, preferential allotment, rights issue such other method aggregating up to Rs. 100 crore. If such placement is completed, the fresh issue size will be reduced.
IndiaFirst is supported by an extensive bancassurance network provided by BoB and Union Bank. BoB, India’s third largest public sector lender, holds a 65 per cent stake in the company, followed by Warburg Pincus affiliate Carmel Point Investments India which holds 26 per cent and Union Bank of India with 9 per cent stake.
ICICI Securities Limited, Ambit Private Limited, BNP Paribas, BOB Capital Markets Limited, HSBC Securities and Capital Markets (India) Private Limited, Jefferies India Private Limited and JM Financial Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer.
The equity shares are proposed to be listed on BSE and NSE.
IndiaFirst Life will be the fifth life insurance company in the industry to list itself after Life Insurance Corporation of India (LIC), ICICI Pru Life, HDFC Life and SBI Life.