SBI Life Insurance IPO - Price Band Rs. 685 to Rs. 700

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 SBI Life Insurance Company Limited – Initial Public Offer - IPO- to open on Wednesday, September 20, 2017, and to close on Friday, September 22, 2017

Price Band fixed from 
Rs. 685 per Equity Share  
to Rs. 700 per Equity Share 
            
SBI Life Insurance Company Limited ("Company" or "Issuer") proposes to open on Wednesday, September 20, 2017, an initial public offering up to 120,000,000 Equity Shares of face value of ₹ 10 each (“Equity Shares”) which comprises of an offer for sale of up to 80,000,000 Equity Shares by State Bank of India (“State Bank” or the “Promoter Selling Shareholder”) and up to 40,000,000 Equity Shares by BNP Paribas Cardif S.A. (the “Investor Selling Shareholder” and together with the Promoter Selling Shareholder, the “Selling Shareholders”) (“Offer”), including a reservation of up to 2,000,000 Equity Shares for purchase by Eligible Employees (as defined in “Definitions and Abbreviations” at page 5 of the red herring prospectus dated September 11, 2017 registered by the Company with the Registrar of Companies, Maharashtra at Mumbai (“RHP”) on September 12, 2017) at a discount of Rs. 68 per Equity Share and a reservation of up to 12,000,000 Equity Shares for purchase by State Bank Shareholders (as defined in “Definitions and Abbreviations” at page 7 of the RHP). The Offer would constitute up to 12% of post-Offer paid-up Equity Share capital and the net offer shall constitute 10.60% of the post-Offer paid-up Equity Share capital.

The Price Band for the Offer is fixed from Rs. 685 per Equity Share to Rs. 700 per Equity Share, with a discount to Eligible Employees of Rs. 68 per Equity Share on the Offer Price. Bids can be made for a minimum of 21 Equity Shares and in multiples of 21 Equity Shares thereafter. The Offer will close on Friday, September 22, 2017.

The Company and the Promoter Selling Shareholders may, in consultation with the book running lead managers to the Offer ("Lead Managers"), consider participation by Anchor Investors. Such Anchor Investors shall Bid during the Anchor Investor Bid / Offer Period; i.e., one Working Day prior to the Bid/Offer Opening Date, on which Bids by Anchor Investors shall be submitted and allocation to Anchor Investors shall be completed.

The Lead Managers are JM Financial Institutional Securities Limited, Axis Capital Limited, BNP Paribas*, Citigroup Global Markets India Private Limited, Deutsche Equities India Private Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited*.

The Equity Shares offered in the Offer proposed to be listed on BSE Limited and National Stock Exchange of India Limited.

The Offer is being made in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“SEBI Regulations”), wherein not more than 50% of the Net Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”), provided that our Company and the Promoter Selling Shareholders may, in consultation with the Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis, out of which one-third shall be reserved for domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price, in accordance with the SEBI Regulations. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Offer Price. All potential investors, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective bank account which will be blocked by the SCSBs, to participate in this Offer.


* In compliance with the proviso to Regulation 21A(1) of the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended, read with proviso to Regulation 5(3) of the SEBI Regulations, BNP Paribas and SBI Capital Markets Limited will be involved only in marketing of the Offer

Disclaimer:-

SBI LIFE INSURANCE COMPANY LIMITED is proposing, subject to applicable statutory and regulatory requirements, receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has registered The Red Herring Prospectus dated September 11, 2017 with the Registrar of Companies, Maharashtra at Mumbai on September 12, 2017. The RHP shall be available on the websites of SEBI and the Stock Exchanges at www.sebi.gov.in, www.bseindia.com and www.nseindia.com, respectively, and at the websites of the Lead Managers: at www.jmfl.com, www.axiscapital.co.in, www.bnpparibas.co.in, www.online.citibank.co.in, www.db.com/India, www.icicisecurities.com, www.investmentbank.kotak.com and www.sbicaps.com, respectively. Potential investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled “Risk Factors” on page 20 of the RHP.

The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws in the United States, and unless so registered may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold within the United States only to “qualified institutional buyers” (as such term is defined in Rule 144A under the U.S. Securities Act) in reliance on the exemption from the registration requirements of the U.S. Securities Act or another available exemption from registration under the U.S. Securities Act and outside of the United States in offshore transactions in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where those offers and sales are made. There will be no public offering of the Equity Shares in the United States.

SBI Life Insurance Company Limited: Trade logo displayed above belongs to State Bank of India and is used by SBI Life under license.


Capitalised terms not otherwise defined in this press release shall have the meanings given to them in the RHP.

For further details contact: Adfactors PR - Purvi Shah 09833431331, 09820531932

Notes to the Editor

Established as a joint venture between the State Bank and BNP Paribas Cardif S. A. in 2001, SBI Life Insurance Company Limited is India’s largest private life insurer, in terms of New Business Premium generated in each fiscal year, since Fiscal 2010 (Source: CRISIL Report). As of July 31, 2017, it had a comprehensive product portfolio of 37 individual and group products (of which eight products are group products), including a range of protection and savings products to address the insurance needs of diverse customer segments. It has developed a multi-channel distribution network comprising an expansive bancassurance channel, including State Bank, the largest bancassurance partner in India, a large and productive individual agent network comprising 95,177 agents as of July 31, 2017, as well as other distribution channels including direct sales and sales through corporate agents, brokers, insurance marketing firms and other intermediaries. As of July 31, 2017, it had bancassurance partnerships with 17 Regional Rural Banks, and with the Punjab and Sind Bank and South Indian Bank. Its bancassurance network provides it with a strong presence across rural and urban areas, including metropolitan cities, tier I, tier II and tier III cities and towns across India. As of July 31, 2017, it engaged with more than 42,000 CIFs at bancassurance partner branches to sell our products, and continue to provide effective technology support and training on product features, customer requirements and sales techniques.
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