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SBI Life, second life insurer to go public, to issue up to Rs 12 cr shares

SBI Life Insurance is joint venture between SBI, BNP Paribas Cardif- French insurance company

Press Trust of India  |  New Delhi 

sbi, SBI, state bank of india, life insurance
SBI Life Insurance

Life has filed the documents with to raise around Rs 6,000-7,000 crore, in which promoters and France's (BNPPC) will sell 12 per cent stake of the company.

"The life insurer is expected to raise about Rs 6,000- 7,000 crore through this (initial public offer)," according to investment sources.

Individually, will dilute 8 per cent and 4 per cent in the join venture company --

This will make a gross dilution of 120 million (12 crore) by both the shareholders, according to the draft red herring prospectus (DRHP) filed with

"Initial public offer of up to 120,000,000 of face value of Rs 10 each of Company Ltd for at a price aggregating up to ... Through an offer for sale by of and SA (selling shareholders) of up to 80 million (8 crore) and up to 40 million (4 crore) equity shares respectively," as per the DRHP document filed by

SBI Life (SBI Life) is a joint venture between India's largest lender of (SBI) and BNP Paribas Cardif-- holding company of France.

At present SBI holds 70.10 per cent in SBI Life and BNPPC 26 per cent. Minority 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.

Explaining the rationale behind the IPO, SBI Life 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 The listing will also provide a public market for equity shares in

"Our company will not receive any proceeds from the offer," it added.

First Published: Mon, July 17 2017. 21:25 IST