SBI Life Insurance's Rs. 8,500 crore IPO receives SEBI nod
What's the story
According to reports, Securities and Exchange Board of India (SEBI) has given approval for the initial public offering (IPO) of SBI Life Insurance Co. Ltd, which is a joint venture between State Bank of India and BNP Paribas Cardif. The life insurer is planning to launch the IPO on September 20 and has set a target of raising Rs. 8,500 crore. Here's more.
IPO
The probable IPO date
According to SBI Life's share sale prospectus, filed with SEBI in July, it'll sell 80 million shares and BNP Paribas will put up 40 million shares, making it a combined 12% stake of SBI Life Insurance Co. Ltd. SBI Life didn't respond to IPO queries, but those aware of it informed Mint that it'll get launched on September 20 and close on September 22.
Sale
Previous stake sale
SBI Life has hired JM Financial Institutional Securities Ltd, Axis Capital Ltd, BNP Paribas, Citigroup Global Markets India Pvt. Ltd, Deutsche Equities India Pvt. Ltd, ICICI Securities Ltd, Kotak Mahindra Capital Co. Ltd and SBI Capital Markets Ltd to handle the sale. Earlier it sold 3.9% stake to investors KKR and Co. LP, and Temasek Holdings Pte Ltd for around Rs. 1,794 crore.
Financials
Company financials
The insurance company, which was incorporated in 2001, was valued at Rs. 46,000 crore in the aforementioned sale. SBI Life Insurance had a portfolio of 37 individual and group products, as of June 30. It had assets worth Rs. 97,736.6 crore under management (AUM), as of 31 March. Its reported profit was Rs. 954.65 crore in FY16-17.