Bank of Baroda-backed IndiaFirst Life Insurance gets SEBI nod to launch IPO
Bank of Baroda will sell 8,90,15,734 equity shares, whereas
Bank of Baroda, India's third largest public sector lender, holds a 65 per cent stake in the company, followed by Warburg Pincus affiliate Carmel Point Investments India which holds 26 per cent and Union Bank of India with 9 per cent stake.
The firm may consider a private placement on a preferential basis or a rights issue aggregating up to Rs 100 crore. If such a placement is completed, the fresh issue size will be reduced.
The net proceeds from the fresh issuance worth Rs 500 crore will be used towards augmentation of its capital base to support solvency levels.
The company, which filed preliminary IPO papers with Sebi in October last year, obtained it's observation letter on March 15, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.
In Sebi's parlance, obtaining an observation letter means its go-ahead to float the IPO.
IndiaFirst Life is supported by an extensive bancassurance network provided by Bank of Baroda and Union Bank, two of India's biggest public sector banks.
ICICI Securities, Ambit, BNP Paribas, BOB Capital Markets, HSBC Securities and Capital Markets (India), Jefferies India and JM Financial are the book-running lead managers to the issue.
The equity shares will be listed on the BSE and NSE.
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