SBI Life Insurance IPO to open on September 20, 2017

SBI Life Insurance IPO to open on September 20, 2017

SBI Life Insurance, a subsidiary of the country’s largest lender SBI, will hit the capital market on 2017, September 20 to raise up to Rs. 8,400 crore.

The initial share sale offer will open on September 20, 2017 and close on September 22, 2017 SBI said in a regulatory filing to the stock exchanges.
This would be the second listing of a life insurer after ICICI Prudential Life Insurance, which went public last year.

According to sources, SBI Life Insurance has fixed a price range of Rs. 685 to Rs. 700 for the IPO.

At the upper end of the price band, the company is expected to raise Rs. 8,400 crore.

SBI Life’s public issue involves its promoters offloading up to 12 crore shares of face value of Rs. 10 each through the offer of sale route, as per the draft offer documents.

State Bank of India (SBI) will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore.

SBI Life Insurance is a joint venture between India’s largest lender SBI and BNP Paribas Cardif (BNPPC)  the insurance holding company of France.

SBI holds 70.10 per cent in SBI Life and BNPPC 26 per cent. Minority shareholders Value Life Pte, an affiliate of KKR Asian Fund and MacRitchie Investments Pte, a wholly owned subsidiary of Temasek Holdings, hold 1.95% each.

Explaining the rationale behind the IPO, SBI Life had said the company wants to achieve the benefits of listing equity shares on the stock exchanges.

“The listing of equity shares will enhance the ‘SBI Life’ brand name and provide liquidity to the existing shareholders.


The listing will also provide a public market for equity shares in India,” the company had said.
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