Bank of Baroda-promoted IndiaFirst Life is all set to launch its Initial Public Offer (IPO), possibly as soon as November, said sources close to the development.
“Post September, in the first or second week of October, we will quickly take a call (on IPO),” a source said, adding that if market conditions remain stable, the IPO could go through in November.
IndiaFirst Life had already received nod from the market regulator, the Securities and Exchange Board of India (Sebi) for the IPO in March.
Bank of Baroda, the largest stakeholder in IndiaFirst with 65% stake, will likely offload 10% stake during the IPO and retain majority shareholding in the company, one of the source said. According to the draft red herring prospectus (DRHP) filed with the market regulator, the issue will comprise a fresh issue of equity shares worth Rs 500 crore and an offer-for-sale (OFS) up to 141 million equity shares from promoters and stakeholders.
In the OFS component of the IPO, Bank of Baroda will offload about 89 million equity shares, while Carmel Point Investments India Private Limited will tender 39 million equity shares and 13 million equity shares will be sold by Union Bank of India. Additionally, the firm may consider a private placement, preferential allotment, rights issue or such other methods which would aggregate up to Rs 100 crore. Based on the success of these mediums, the size of the fresh issue would be reduced or reworked.
The proceeds from the fresh issuance worth Rs 500 crores will be used towards augmentation of its capital base to support solvency levels. ICICI Securities Limited, Ambit Private Limited, BNP Paribas, BOB Capital Markets Limited, HSBC Securities and Capital Markets (India) Private Limited, Jefferies India Private Limited and JM Financial Limited are the book running lead managers and KFin Technologies Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.