IndiaFirst Life Plans Rs 250 Crore Subordinated Debt Fundraise
· Business · Economic Times
IndiaFirst Life Insurance plans to raise ₹150 to 250 crore through subordinated debt in the fourth quarter to strengthen its capital base in Mumbai. Managing director and chief executive Rushabh Gandhi stated that the proposed fundraise coincides with the maturity of the insurer's existing subordinated debt of approximately ₹125 crore in the same quarter. The company maintains a solvency ratio above 190%, comfortably surpassing the minimum regulatory requirement of 150%, and does not require fresh equity capital from shareholders. Meanwhile, BNP Paribas Cardif is set to acquire Warburg Pincus' 26 percent stake in the insurer through a transaction between shareholders that will not introduce fresh capital. Gandhi confirmed that the company's initial public offering plans have been deferred rather than abandoned, and a fresh draft red herring prospectus will be filed once the Cardif transaction receives regulatory approval.
Why it matters
The fundraise and upcoming shareholder transition affect IndiaFirst Life's capital structure and future public listing timeline, which is dependent on regulatory clearance for the BNP Paribas Cardif stake acquisition.
Read the original report — Economic Times
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