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Bank of Baroda promoted IndiaFirst Life Insurance Company Limited has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).

The Mumbai based insurer is one the fastest growing private life insurers in the country in terms of new business insured retirement plan (IRP) in fiscal 2022.

The company had filed preliminary IPO papers with Sebi on October 21, last year. 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 company in consultation with merchant bankers to the issue 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.

The proceeds from the fresh issuance worth Rs 500 crores will be used towards augmentation of its capital base to support solvency levels.

IndiaFirst Life Insurance Company Limited recorded its highest five-year growth in terms of New Business Individual Rated Premium (IRP) amongst life insurers with PSU bank percentage, with a CAGR of 27.3% between fiscal 2017 to fiscal 2022.

The organization is chaired by Mr. Sanjiv Chadha, Chairman and Non-Executive Director (nominee of Bank of Baroda). The key management team members include Ms. Vishakha R M, Managing Director and Chief Executive Officer and Mr. Rushabh Gandhi, Deputy CEO, among others.

IndiaFirst is supported by an extensive bancassurance network provided by Bank of Baroda and Union Bank, two of India's biggest public sector banks. As of June 30, 2022 it offered 29 retail products, comprising of which 9 participating products, 16 non-participating products (of which 11 non-participating savings products and six non-participating protection products) and 4 ULIPs, it also has 13 group products. On the group products front, it had introduced 17 products (including group term life products, group credit life products and riders). As on June 30,2022 it had 58,610 retail product policies in force and 13,47,856 lives covered by group policies, It helps its customers in savings, career and marriage besides retirement planning and asset drawdown.

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.