Indiafirst Life Insurance Company IPO

In terms of New Business IRP in Fiscal 2022, Indiafirst Life Insurance Company were among the private life insurers in India that were expanding the quickest. (Source: Report from CRISIL) For the five years ending in Fiscal 2022, they also experienced the largest increase in terms of New Business IRP among life insurers with PSU bank parentage, with a CAGR of 27.3%. (Source: Report from CRISIL). Indiafirst Life Insurance Company IPO will hit the stock market in February 2023.

About Indiafirst Life Insurance Company

The Indian private life insurance market expanded at a CAGR of 13.9% throughout that time. (Source: CRISIL Report) In Fiscal 2022, they recorded a respectable Value of New Business Margin of 23.10%.

They were able to achieve this growth thanks to a balanced product portfolio with a stronger emphasis on non-participating products, supported by extensive bancassurance networks through two of their Promoters, Bank of Baroda, the third-largest public sector bank in India, and Union Bank of India, the fifth-largest public sector bank in India, both measured by total assets as of March 31, 2022. (Source: CRISIL Report)

They have also benefited by our increasing persistence, the rapid expansion of their new channels, and their emphasis on being digital first.

Growth 

According to the Embedded Value Report published by the Independent Actuary, their sustained dedication to customer-centric operations has led to high Persistency Ratios in the three years prior, which are reflected in the rise in their Embedded Value, which increased at a CAGR of 10.94% from 2021 to 2022, from 16,812.00 million in fiscal 2021 to 18,651.00 million in Fiscal 2022.

They began operations in 2009 and achieved profitability in their sixth year, making them the third fastest private life insurer in India to accomplish three years of profitability.

They benefit greatly from their bancassurance connections with one of their Promoters, BOB, which as of March 31, 2022, had the third-largest total assets of any public sector bank in India.

Portfolio

They have created a wide range of individual & group product divisions in order to fulfill customer needs during different life phases.

As of June 30, 2022, their range of retail products included two riders, six non-participating protection products, 11 non-participating savings products, nine participating products, and four unit-linked products.

The percentage of non-participating products’ contribution to their New Business IRP climbed from 15.52% in Fiscal 2020 to 49.55% in Fiscal 2022, and it reached 52.62% in the three months ending June 30, 2022.

In order to suit the needs of groups and corporations, they have also introduced a variety of products. By June 30, 2022, they had released 17 group products, including riders, group credit life products, & term life products.

Indiafirst Life Insurance Company IPO

Indiafirst Life Insurance Company Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 500 Crore and 141,299,422 Equity Shares on 21 October 2022.

The offer includes a fresh issue of INR 500 Crore and there is offer for sale (OFS) of 141,299,422 Equity Shares by the promoters mentioned in the DRHP. They are looking for any Pre-IPO placement of INR 100 Crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Jun-22	31-Mar-22	31-Mar-21	31-Mar-20
Total Assets	19,123.26	19,451.49	17,295.63	14,943.78
Total Revenue	732.60	7,205.31	6,519.08	3,599.81
Profit After Tax	(41.83)	(281.62)	30.19	(97.42)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	2.46	2.46	3
Financial Year 2021	0.46	0.46	2
Financial Year 2022	(1.53)	(1.53)	1
Weighted Average	(2.23)	(2.23)
30 June 2022	(0.63)	(0.63)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

Indiafirst Life Insurance Company limited feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:

• One of the private life insurers in India that is expanding the fastest, with steadily increasing market share.
• Extensive bancassurance network through two of the country’s biggest public sector banks; and quickly expanding emerging channels.
• A product line with a well-balanced, diverse, and profitable mix.
• Due to excellent brand equity and customer focus, persistency numbers are strong and improving.
• Leading digital platform that offers distributors and customers a seamless experience.
• A management team that is qualified, extremely experienced, and supported by prestigious investors.
• Financial performance that is stable and lucrative over the long term drives value creation.

Indiafirst Life Insurance Company Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	SBI Life Insurance Company Limited	80.21
2	10	HDFC Life Insurance Company Limited	80.64
3	10	ICICI Prudential Life Insurance Company Limited	96.73

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the NSE on October 11, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

Indiafirst Life Insurance Company IPO Details

IPO Opening Date	February 2023
IPO Closing Date	February 2023
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	500 Crore
Offer for Sale	141,299,422 Equity Shares

Indiafirst Life Insurance Company IPO Date

Indiafirst Life Insurance Company Limited IPO opening date is February 2023, and the closing date is February 2023. The Indiafirst Life Insurance Company issue may list in February 2023.

IPO Opening Date	February 2023
IPO Closing Date	February 2023
Basis of Allotment Date	February 2023
Initiation of Refunds	February 2023
Credit of Shares to Demat Account	February 2023
IPO Listing Date	February 2023

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Indiafirst Life Insurance Company IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Indiafirst Life Insurance Company IPO.

Indiafirst Life Insurance Company IPO GMP

Indiafirst Life Insurance Company Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
February 2023
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February 2023
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Indiafirst Life Insurance Company Limited IPO Review

Indiafirst Life Insurance Company Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Indiafirst Life Insurance Company IPO is good or bad.

Indiafirst Life Insurance Company Limited IPO Risk

• A reduction in the performance requirements of their bancassurance partners or the termination or unfavorable modification of their bancassurance agreements, specifically their bancassurance agreement with one of its Promoters, Bank of Baroda, might have a significant negative impact on their operations.
• A negative persistency metric or a negative variation in persistency metric could significantly harm their financial situation.
• Their Company is subject to complicated regulatory obligations, and if they don’t follow them, their business operations might be hampered or they might face heavy fines.
• It could have a materially negative impact on their business, cashflow and financials if actual claims experienced and other characteristics deviate from the assumptions they made when determining the price and setting reserves for their products.

Other Threats

1. The COVID-19 pandemic & comparable occurrences could have a negative impact on all facets of their organization.
2. The occurrence of disasters and catastrophes, whether natural or caused by human activity, could significantly increase their liabilities for policyholder claims & cause losses in their investment portfolios, which in turn could materially adversely affect their financial condition.
3. Interest rate changes could significantly and negatively impact business profitability. Additionally, the Indian capital markets only offer a small number of different long-term fixed income options.
4. The estimations used in the Embedded Value Reports could alter significantly if key assumptions are updated or if their experience differs from their assumptions used to generate their Embedded Value because embedded value calculations entail a large amount of technical sophistication.

Indiafirst Life Insurance Company Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Indiafirst Life Insurance Company IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Indiafirst Life Insurance Company Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
February 2023	1
February 2023	2
February 2023	3

Indiafirst Life Insurance Company Limited Management

Their senior management team has a wealth of experience, which puts them in a solid position to take advantage of potential future growth.

Their board of directors is made up of both management leaders & independent members who each bring a wealth of business knowledge to the table, particularly in the fields of marketing, banking, insurance, & finance.

They have a Nomination & Remuneration Committee that is responsible for appointing and paying their management team in accordance with statutory regulations.

Strong subcommittees, such as the Risk Management Committee, which routinely reviews the Company’s risk assessment framework, provide the Board of Directors with necessary assistance. More than 35 years of experience in the insurance industry have been accumulated by their MD & CEO, RM Vishakha.

Indiafirst Life Insurance Company Limited‘ Promoters

• Bank of Baroda

Principal Shareholder’s Holding

Pre Issue Share Holding	63.97%
Post Issue Share Holding

Indiafirst Life Insurance Company Limited Prospectus