IndiaFirst Life, life insurance company backed by Warburg Pincus, begins work on an IPO plan


Mumbai: After the IPO of Life Insurance Corporation (LIC), another life insurer has drawn up plans to enter the public markets. IndiaFirst Life Insurance Co Ltd, an insurance company backed by state lenders Bank of Baroda, Union Bank of India and private equity firm Warburg Pincus has started talks with investment banks for its proposed IPO in scholarship, said three people familiar with the development, speaking on condition of anonymity.

Bank of Baroda owns a 65% stake in the life insurer, while Union Bank of India owns 9% and Carmel Point Investments India Private Ltd, an entity affiliated with Warburg Pincus, owns the remaining 26%.

“Indiafirst has engaged in discussions with investment banks over the past two months. Banks such as ICICI Securities, Axis Capital and JM Financial and a few others are vying to win the IPO mandate,” said the first person mentioned above.

According to the second person quoted above, Indiafirst’s proposed IPO will largely be a secondary sale of shares, known as a sale offering, by existing investors in the company.

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“Bank of Baroda and Union Bank will be the main sellers in the IPO. Warburg bought its 26% stake in 2019, so they will not be looking to sell, although they may opt for a small amount of dilution The size of the IPO could reach Rs 2,000 crore, depending on the eventual dilution decided by the shareholders, but these figures are yet to be confirmed and therefore the contours of the deal could change significantly over time. when the company will file its DRHP with the regulator,” the second person said.

A successful IPO will make IndiaFirst the ninth insurance company to go public. Besides LIC, state-owned insurers General Insurance Corp of India and New India Assurance Co Ltd are also listed on the stock exchange. ICICI Prudential Life Insurance, HDFC Life Insurance, ICICI Lombard General Insurance, SBI Life Insurance and Star Health and Allied Insurance Co are the other listed insurance companies in India.

“IndiaFirst Life Insurance is doing well. It is the fastest growing life insurance company in the country. Bank of Baroda, our largest shareholder, has expressed its view that the company may list timing and expediency considerations. Everything else at this point is just speculation,” Rushabh Gandhi, Deputy CEO of IndiaFirst Life Insurance said in an email response to a query from Mint.

For the fiscal year ending March 31, the insurance company saw its gross premiums jump 28% from fiscal 21 and cross Rs 5,187 crore, according to a statement from the company.

It recorded a 55% individual bonus for new ventures of Rs 1,428.7 crore compared to Rs 924 crore in FY21. customers, stood at 82%, compared to 78.7% at March 31, 2021. The insurer recorded a growth of 112% in Group Credit Life New Business Premium to Rs503.6 crore (FY21: 238 Crore) •

Its assets under management grew by 11% to Rs 18,932 crore in FY22.

“Our strong business performance allowed us to continue to grow faster than the industry for the seventh consecutive year. In FY22, we recorded a 50% increase in individual New Brunswick APE, but what is more encouraging is the fact that we have a 7-year CAGR of 36% – something we are extremely proud of,” said Rushabh Gandhi, Deputy Managing Director, IndiaFirst Life Insurance Company Limited in a statement. release announcing the company’s performance for fiscal year 22.

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