The IndiaFirst Life Insurance IPO consists of new shares worth Rs. 500 crore as well as an offer to sell 14 crore equity shares from selling shareholders. Although it is a book-building IPO, the India First Insurance IPO price band has not yet been confirmed.
IndiaFirst Life Insurance began operations as a private life insurance firm in 2009. In fiscal 2022, the Indian private life insurance company was one of the fastest-expanding in terms of New Business IRP. For the five-year period ending in fiscal 2022, it recorded 27.3% CAGR growth in New Business in IRP, compared to 13.9% CAGR growth in the private life insurance market. IndiaFirst Life Insurance is backed by Bank of Baroda, the third-largest public sector bank, and Union Bank of India, the fifth-largest PSU bank. It primarily operates
through its extensive bancassurance network, which generated 91.34% of New Business IRP in fiscal 2022.
IndiaFirst Life Insurance Company Limited IPO Objective
The key objectives of the IPO are the following.
- The company proposes to utilize the net proceeds from fresh issues to support the solvency level.
Should you invest in IndiaFirst Life Insurance Company Limited?
Here are a few key reasons to consider before investing in the IPO:
- It offers a diversified product portfolio, catering to its customers’ life insurance needs through various stages of life.
- IndiaFirst has struck a non-exclusive bancassurance arrangement with BOB and an exclusive bancassurance agreement with BOB.
- New Business IRP through emerging channels has increased at a CAGR of 27.51% from FY 2020 to 2022.
- Its product portfolio comprises life insurance and savings products that are both participating and non-participating.
IndiaFirst Life Insurance Financials
| Particulars | Year ending on June 30, 2022 (₹ million) | Year ending on March 31, 2022 (₹ million) | Profit AfteYear ending on March 31, 2021 (₹ million)r Tax |
|---|---|---|---|
| Net premium Earned | 8,735.16 | 49,852.05 | 39,009.40 |
| Income from Investment | 2,037.91 | 17,291.44 | 24,373.94 |
| Net Benefits Paid | 4,494.12 | 58,894.01 | 55,758.07 |
| Surplus | 234.12 | 3,216.17 | 1,809.78 |
| Profit After Tax | 418.27 | 2,816.20 | 301.89 |
Noteworthy Highlights of IndiaFirst Life Insurance Company Limited
- IndiaFirst Insurance’s Embedded Value (EV) has risen from Rs. 1,681.20 crore in 2021 to Rs. 1,865.10 crore in 2022. The recorded rate of increase is 10.94% CAGR.
- Non-participating products raised their contribution to our New Business IRP from 15.52% in fiscal 2020 to 49.55% in fiscal 2022.
Know Us before investing
Strengths
- It is one of India’s fastest-growing life insurance companies, with a significant market share gain.
- It operates through an expansive network of bancassurance of BoB and Union Bank of India.
- The company offers a balanced and diversified product portfolio consisting of participating and non-participating products.
Risks
- Any change in the bancassurance agreement can lead to a decline in performance standards.
- Adverse persistency metrics or an adverse variation in persistency metrics could adversely affect the financial condition of the company.
- The insurance industry is highly regulated, and failing to comply with the regulations can result in significant penalties.
IndiaFirst Life Insurance Company Ltd. IPO FAQs:
Q1. What is IndiaFirst Life Insurance Company Limited’s IPO?
Ans. The IndiaFirst Life Insurance Company Limited IPO combines fresh issues worth Rs. 500 crore and an offer for sale of equities from an existing shareholder, Bank of Baroda.
Q2. When will IndiaFirst Life Insurance Company Limited’s IPO allotment be available?
Ans. Will be updated soon.
Q3. What will be IndiaFirst Life Insurance Company Limited’s IPO lot size?
Ans. Will be updated soon.
Q4. When will IndiaFirst Life Insurance Company Limited’s IPO open for subscription?
Ans. Will be updated soon.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q6.When will IndiaFirst Life Insurance Company Limited list on exchanges?
Ans. Will be updated soon.
Q7. What would be the listing gains on the IndiaFirst Life Insurance Company Limited IPO?
Ans. Listing gains cannot be ascertained before the listing of the IPO shares on the stock exchange.
Q8. I have finished the application process for the IndiaFirst Life Insurance Company Limited IPO, but the funds are not yet debited. What is the reason?
Ans. The bank will only block the amount in your account. The money will not be debited before the IPO shares are allotted.
Q9. How do I approve the UPI mandate request for the IndiaFirst Life Insurance Company Limited IPO?
Ans. You must complete the bidding process by logging in to your UPI handle to approve the payment mandate.
