IndiaFirst Life Insurance files for IPO

The public issue consists of a fresh issue of equity shares worth up to $60m

Bank of Baroda-backed IndiaFirst Life Insurance has filed a draft red herring prospectus to the Securities and Exchange Board of India to launch an initial public offering.

According to the draft prospectus, the issue includes a fresh issue of up to $60m along with an offer for sale (OFS) of up 141,299,422 equity shares by the promoters and existing shareholders of the company.

Bank of Baroda will sell 89,015,734 equity shares whilst the Union Bank of India will sell 1,30,56,415 equity shares in the OFS. Meanwhile, Carmel Point Investments India Private Limited will sell 39,227,273 equity shares.

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The offer is being made through the Book Building Process, wherein not less than 75% of the offer shall be available for allocation to Qualified Institutional Buyers, not more than 15% of the offer shall be available for allocation to Non-Institutional Bidders and not more than 10% of the offer shall be available for allocation to Retail Individual Bidders.

The proceeds from the fresh issuance will be used towards augmentation of IndiaFirst Life’s capital base to support solvency levels.