IndiaFirst Life Insurance Company Limited IPO Profile :
IndiaFirst Life Insurance Company was one of the fastest-growing private life insurers in India in terms of New Business Individual Rated Premium (“IRP”) in Fiscal 2022. The company also recorded the highest growth in terms of New Business IRP amongst the life insurers which have PSU bank parentage, with a CAGR of 27.3%, for the five-year period ending fiscal 2022. In the same period, the Indian private life insurance industry grew at a CAGR of 13.9%. The company reported a healthy Value of New Business (“VNB”) Margin of 23.10%, in Fiscal 2022. It has achieved this growth on the back of a balanced product portfolio that has an increased focus on the non-participating products, supported expansive bancassurance networks through one of the Promoters, Bank of Baroda (“BOB”), the third largest public sector bank in India as well as through the bancassurance relationship with Union Bank of India (“UBI”), the fifth largest public sector bank in India, each in terms of total assets as of March 31, 2022.
IndiaFirst Life Insurance Company profiles its retail customers based on lifestyle, occupation, financial demographic, and specific requirements to develop a comprehensive offering of products. Our products address consumer needs through the four principal stages of life: (i) beginning of savings, (ii) family needs and marriage, (iii) career, and (iv) retirement planning and asset drawdown. As of June 30, 2022, the company offered 29 retail products, 13 group products along with six riders (across the retail and group portfolios), as well as policies under the PMJJBY scheme, catering to the protection, health, savings, and retirement needs of the customers. The product portfolio ranges across various segments within retail and group products and enables the company to serve customers across various age groups.
IndiaFirst Life Insurance Company Limited IPO Details:
|IPO Open Date||Not Disclosed|
|IPO Close Date||Not Disclosed|
|Listing Date||Not Disclosed|
|Face Value||₹10 per share|
|Lot Size||Not Disclosed|
|Issue Size||Not Disclosed|
|Fresh Issue||Not Disclosed|
|Offer for Sale||141,299,422 shares
(aggregating up to [●] Cr)
|Issue Type||Book Built Issue IPO|
|Listing At||BSE, NSE|
|QIB Shares Offered||Not more than 75% of the Offer|
|NII (HNI) Shares Offered||Not less than 15% of the Offer|
|Retail Shares Offered||Not less than 10% of the Offer|
|Company Promoters||Bank Of Baroda, and Carmel Point Investments India Private Limited|
IndiaFirst Life Insurance Company Limited IPO Financial Analysis:
|Particulars||Q1 FY-23(in cr.)||FY-22(in cr.)||FY-21(in cr.)||FY-20(in cr.)||CAGR|
|New Business IRP||295.84||1345.07||894.07||849.94||24.5%|
|Number of retail policies sold||58610||265471||197564||187896||19.9%|
|New Business Premium||501.05||2766.21||2050.57||1866.79||20.5%|
|Persistency Ratio –13th month (%)||82.73%||81.16%||78.49%||75.76%|
|Solvency Ratio (%)||166.04%||165.06%||181.26%||172.25%|
Pre-Offer shareholding of the Selling Shareholders:
|S. No.||Name of the Selling Shareholder||No. of Equity Shares
|Percentage of the pre-Offer paid
Up equity share capital (%)
|1.||Bank of Baroda||490,340,909||65%|
|2.||Carmel Point Investments India Private Limited||196,136,364||26%|
|3.||Union Bank of India||67,893,357||9%|
IndiaFirst Life Insurance Company Limited IPO Offer for Sale Details:
|S. No.||Name of the Selling Shareholder||Number of Offered Shares|
|1.||Bank of Baroda||Up to 89,015,734 Equity Shares|
|2.||Carmel Point Investments India Private Limited||Up to 39,227,273 Equity Shares|
|3.||Union Bank of India||Up to 13,056,415 Equity Shares|
IndiaFirst Life Insurance Company Limited IPO Strengths:
IndiaFirst Life Insurance Company was one of the fastest-growing private life insurers in India in terms of New Business IRP in Fiscal 2022. The company also recorded the highest growth in terms of New Business IRP amongst life insurers with PSU bank parentage, at a CAGR of 27.3%, for the five-year period ending fiscal 2022.
IndiaFirst Life Insurance Company’s diversified and balanced product portfolio is an important contributing factor to the growth of its business, as the range of products addresses varying requirements of retail and corporate customers, adopting an optimal pricing strategy with a focus on higher margin products.
IndiaFirst Life Insurance Company’s professional management team from its shareholders, BOB, Carmel Point Investments India Private Limited (an affiliate of Warburg Pincus Group), and UBI, have assisted the company in capital raising and have provided business advice, which has been critical to the company’s growth journey.
Leveraging robotic process automation (“RPA”) and AI/ML has allowed the company to streamline core administrative operations and reduce personnel expenses, including in the form of a business development manager (“BDM”).
IndiaFirst Life Insurance Company’s continued focus on the quality of new business, needs-based selling, customer service, instant service recovery as part of the customer experience process, brand equity, and streamlining the renewal premium payment process, has resulted in an improved Persistency Ratio. The company’s 13th-month persistency increased from 78.49% for the relevant period ended March 31, 2021to 81.16% for the relevant period ended March 31, 2022 and stood at 82.73% for the relevant period ended June 30, 2022.
IndiaFirst Life Insurance Company Limited IPO Risk factors:
Any termination of, or adverse change in, the company’s bancassurance arrangements, and in particular the bancassurance agreement with one of the Promoters, Bank of Baroda, or a decline in performance standards of the bancassurance partners, may have a material adverse effect on the business, results of operations and financial condition of the company.
Persistency can be affected by overall customer satisfaction and market sentiments. Events such as changes in regulatory policies, volatility in capital markets, loss of customer confidence in the insurance industry or in the company, or decline in the customers’ financial position due to a deterioration in economic conditions, may cause discontinuations of insurance policies by the customers, lowering persistency.
IndiaFirst Life Insurance Company has incurred a net loss in the past, and may not be able to achieve or maintain profitability in the future. Further, any negative cash flows from operating activities in the future would adversely affect the cash flow requirements, which may adversely affect the company’s ability to operate the business and implement the growth plans, thereby affecting the financial condition of the company.
If IndiaFirst Life Insurance Company does not meet solvency ratio requirements, the company could be subject to regulatory actions and could be forced to raise additional capital. The company may need additional capital in the future, and the company cannot assure investors that it will be able to obtain such capital on acceptable terms or at all.
Objects of the Offer:
IndiaFirst Life Insurance Company proposes to utilize the Net Proceeds towards funding the following objects:
- Augmentation of the capital base to support solvency levels
- General corporate purposes
Registrar to the offer:
KFin Technologies Limited
Contact Person: M. Muralikrishna
Tel: +91 40 6716 2222
IndiaFirst Life Insurance Company Limited IPO FAQ
Ans.IndiaFirst Life Insurance Company Limited IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The IndiaFirst Life Insurance Company Limited IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.