You are here: Home » PTI Stories » National » News
Business Standard

SBI Life to focus on protection plans; enter market on Sep 20

Press Trust of India  |  Mumbai 

Life Insurance, which is going to come up with an initial public offer (IPO), today said the company will focus on protection products, including critical illness. "Recently, we had launched a 'Sampoorn Suraksha', which is a critical care product. Going forward, we are planning to bring out more protection products, including critical care plans," Life Managing Director and CEO Arijit Basu told reporters here. He said, this is pure divestment and at this moment the company has adequate capital, which is sufficient for the next three years. "The capital requirement is adequate and we will not require any more funds for the next three years. This is pure divestment," Basu added. Life, which holds 20 per cent market share of the private life business in the country, will more or less maintain 50:50 balance of market-linked and traditional product portfolio. of chief Arundhati Bhattacharya, who was present on the occasion, said the funds raised will go back to the promoters. "The capital raised will go back to the promoters.

This will enhance SBI's brand name and provide liquidity to the existing shareholders," she added. When asked about listing of other sunsidiaries, Bhattacharya said, will not take that long to unlock value of any other subsidiaries. "Yes we have taken 23 years to come back to the market again. But I can assure you it won't take that long for the next of our offspring to come to the market," she added. The private insurer will hit the capital market on September 20, to raise up to Rs 8,400 crore. The initial share sale offer will open on September 20 and close on September 22, 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. The price band for the offer as decided by Life and the selling shareholders, in consultation with the lead managers, has been fixed between Rs 685 to Rs 700 per share of Rs 10 each. At the upper end of the price band, the company will raise Rs 8,400 crore. 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. of (SBI) will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore. Life is a joint venture between India's largest lender and BNP Paribas Cardif (BNPPC) -- the insurance-holding company of France. holds 70.10 per cent in 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 per cent each.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, September 13 2017. 16:57 IST