IndiaFirst Life Insurance selects bankers for IPO expected later this year

IndiaFirst Life Insurance, a private company promoted by Bank of Baroda, has selected investment bankers for its initial public offering (IPO) expected to hit the capital markets by the end of this year, sources said.

ICICI Securities will be the lead banker and Axis Securities, HSBC Securities, and BNP Paribas Securities among other investment bankers selected for the public issue, said people in the know. IndiaFirst is expected to file its draft red herring prospectus (DRHP) with markets regulator Securities and Exchange Board of India (Sebi) by the next quarter, sources said.

IndiaFirst’s IPO follows the public issue of Life Insurance Corporation (LIC) in May this year when the state-owned firm raised more than Rs 20,000 crore from the capital markets. LIC’s share price has since tumbled due to market volatility.

State-owned lender Bank of Baroda owns 65 per cent stake in IndiaFirst and Carmel Point Investments India Pvt Ltd, owned by Warburg Pincus, holds 26 per cent. Rest of the stake is with state-owned Union Bank of India.

“There is a possibility that that company will be mature to go to the market. Whether that can happen during the course of this financial year, is something that of course, time would tell because accessing markets is a function of market sentiment, timing. But I believe, that is a possibility which is there on the table,” said Sanjiv Chadha, MD&CEO of Bank of Baroda, in an earnings call last quarter.

An email sent to IndiaFirst remained unanswered.

IndiaFirst will be the fourth private sector life insurer to get listed on the bourses and overall the fifth life insurer to go for an IPO. The other four are ICICI Prudential Life Insurance, SBI Life Insurance, HDFC Life Insurance, and Life Insurance Corporation. Four other insurers in the general insurance space are also listed on the bourses namely ICICI Lombard General Insurance, New India Assurance, General Insurance Corporation, and Star Health & Allied Insurance.

IndiaFirst Life insurance entered the insurance industry in 2009 as the 23rd private sector life insurance company. As of March 31, 2022, the company is ranked as 11th in the pecking order according to its individual new business annual premium equivalent. In FY22, it earned premiums to the tune of Rs 5,187 crores and had assets under management (AUM) of Rs 18,932 crores. The company offers a diversified suite of over 46 need-based products & riders catering to varied customer segments.

Listed Insurance Companies

Insurers	M-Cap (crore)
Life Insurance Corporation	4,44,678.96
ICICI Prudential Life Insurance	73,182.29
SBI Life Insurance	1,11,683.45
HDFC Life Insurance	1,17,925.60
ICICI Lombard General Insurance	60,474.88
New India Assurance	13,184
Star Health & Allied Insurance	20,193.14
General Insurance Corporation	27,419.49