IndiaFirst Life Insurance Company Limited IPO Details 

Last Updated on February 6, 2024 by ethinos

Incorporated in 2008, IndiaFirst Life Insurance Limited is the third fastest-growing life insurer in India. It has attained profit during the sixth year of its operations. This company has an excellent record of holding a long-standing commitment to its customers. Thus, it has a high persistence ratio in the three preceding years.

This Mumbai-based insurer received the green signal from the Securities and Exchange Board of India (SEBI) for launching its IPO in March 2023. As per news reports, it wants to launch its IPO by March of this year and is currently tracking investor sentiment for it.

Continue reading this blog to gain detailed insights about the strengths and risks of IndiaFirst Life Insurance Company Ltd.

About IndiaFirst Life Insurance Company Limited

IndiaFirst Life Insurance Company is a rapidly growing private life insurer in India, which recorded the highest growth among insurers during fiscal year 2022 based on its new individual policy premiums. Two of the company’s promoters, Union Bank of India and Bank of Baroda are among the largest Indian public sector banks.

IndiaFirst might be the newest insurance provider but the fastest-growing insurer as well. During the fiscal year 2017 to 2022, the company recorded a CAGR growth of 27.3%. This is quite higher than the general growth rate of 13.9% during that time. During the fiscal year 2022, the company also reported a healthy value of new business margin of 23.10%. 

IndiaFirst Life Insurance Limited mainly provides term insurance plans and investment plans. It provides 9 participating products, 16 non-participating products, 29 retail products, 13 group products and 4 ULIPs. Apart from these, as of June 30, 2022, it has a record consisting of 58,610 retail products and 13,47,856 group policies. Moreover, the company operates successfully over 5,132 branches across India. This includes 8 regional rural banks as well associated with BoB and UBI. 

This insurance company provides products that meet all life insurance requirements of its customers. Thus, its product portfolio takes into consideration a wide range of products across different individuals. Additionally, one can also avail policies under the PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana) scheme. 

IPO Details and Objectives

IndiaFirst Life Insurance Company is planning to launch its Initial Public Offering (IPO) this year. For this, it submitted the draft red herring prospectus (DRHP) to the market regulator Securities and Exchange Board of India (SEBI). 

The IPO comprises two parts – a fresh issue and an Offer for Sale (OFS). The fresh issue size amounts to Rs. 500 crore while the OFS consists of a maximum of 14,12,99,422 equity shares. For this offer for sale, the promoters of this company, namely, Bank of Baroda and Carmel Point Investments Private Limited will sell 89 million shares each. Union Bank of India will sell shares up to 13,056,415. This is a book-building IPO and the company aims to utilise its net proceeds to support its solvency level. 

Also Read: IPO investment strategy

Strengths

Some of the strengths of IndiaFirst Life Insurance Company Limited are listed as follows:

• The company has a strong relationship with one of its promoters, Bank of Baroda. This thereby provides the company access to 260 million customers worldwide operating in 17,587 branches across India.
• IndiaFirst Life Insurance Limited is the ninth largest in the world and fourth largest in Asia in the Indian life insurance market, as per a CRISIL report. There are various economic factors including insurance penetration, density and protection gap in India that indicate significant growth potential for this company in the future. 
• This life insurance company has a diversified product portfolio that contributes to the growth of its business. The range of products fulfils the demand of both retail and corporate customers. Customers are segmented on the basis of their needs, financial demographics, occupation and lifestyle.

Risks Involved

Apart from the strengths, before investing in an IPO, you must also be aware of the risks involved. Some of these risks are mentioned below:

• The company is responsible of managing interest rate risk through continuous monitoring of the duration of assets and liabilities. It also engages in conducting stress tests to mitigate the costs of funding. However, the company might run into losses because of cash flow mismatch and fluctuations in assets and liabilities. 
• The business of IndiaFirst Life Insurance is subject to complex regulatory requirements. If there is any discrepancy in meeting these requirements, the operations of this company will be affected or it might face significant penalties.

Final Words

By now, you must have a clear understanding of IndiaFirst Life Insurance Company Ltd IPO. This is the second time this life insurance company has filed its DRHP with SEBI. It solely aims to launch its IPO to increase its solvency with the raised capital. 

If you are planning to start your investment with this IPO, consider explore further details. You can also open a demat and trading account with us to make your investment journey in the future hassle-free.

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