IndiaFirst Life Insurance, promoted by the Bank of Baroda, has filed preliminary documents with Sebi to raise funds via an IPO. Commercial bank officials say IPO size could be between Rs 2,000 and 2,500 crores.

Draft Red Herring Prospectus (DRHP) says the open offer consists of new shares worth up to Rs 500 crore and an Offer For Sale (OFS) of up to 141,299,422 shares from promoters and selling shareholders. As part of the OFS, the Bank of Baroda (BOB) will sell 89,015,734 shares, Carmel Point Investments India will sell 39,227,273 shares, and the Union Bank of India will sell 13,056,415 shares.

India’s third-largest PSU bank, BOB, holds a 65% stake in the company, followed by Warburg Pincus subsidiary Carmel Point Investments India with 26% and Union Bank of India with 9%. Proceeds from the new issue worth Rs 500 crore will increase its capital base to support solvency levels.

The Mumbai-based insurer’s net premium income grew by 27.8% from Rs 39,00.94 crore in FY21 to Rs 4,985.21 crore in FY22. The company’s embedded value rose 11% from Rs 1,681.20 crore in FY21 and reached Rs 1,865.01 crore in FY22.

As of June this year, it had 1,634 individuals and 21 corporate agents. ICICI Securities, Ambit, BNP Paribas, BOB Capital Markets Limited, HSBC Securities and Capital Markets (India) Private Limited, Jefferies India and JM Financial are the book-runners for the offering. Shares will be listed on the BSE and NSE.