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SBI Life IPO to be priced at Rs 685-700 a share

The IPO will raise as much as Rs 8400 crore for SBI Life's two main shareholders

Subrata Panda  |  Mumbai 

L&T Fin, group to raise ~15,000 cr for IPO finance

SBI Life Insurance, a joint venture between (SBI) and BNP Paribas Cardif, will come out with its initial public offering on September 20.

The issue, which is an offer for sale by the two promoters, will be priced in the band of Rs 685-700 per share.

In an announcement to the stock exchanges, said the of the life insurance firm will close on September 22. SBI Life is expected to raise up to Rs 8,400 crore from its offer for sale of 120 million shares.

SBI will dilute 80 million shares and BNP Paribas Cardiff will offload 40 million shares, amounting to 12 per cent stake in the company.

The company had filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) in July for its listing and a got a nod from the regulator in September.

In December 2016, its valuation was Rs 46,000 crore when KKR and Temasek purchased 1.95 per cent stake each at Rs 460 per share.

SBI Life will become the second life insurance company to get listed on the bourses after ICICI Prudential Life Insurance listed its business via an last year. HDFC Life is also in line to list its business after having filed the DRHP in July.

SBI holds about 70.1 per cent of the shares in SBI Life; whereas BNP Paribas has a holding of 26 per cent in the joint venture. KKR, a private equity firm, and Temasek, a Singapore government-owned investment company, hold the rest of the shares.

For FY17, SBI Life witnessed a 43 per cent year-on-year (y-o-y) growth in new business premium at Rs 10,144 crore, while gross written premium was up 33 per cent y-o-y at Rs 21,015 crore. Assets held on March 31, 2017, at Rs 97,737 crore, were up by 22 per cent over the previous year. Profit after tax stood 
at Rs 955 crore in FY17 versus Rs 861 crore in the year-ago period.

First Published: Wed, September 13 2017. 01:19 IST