SBI Life files IPO papers with Sebi, likely to raise Rs 6,500-7,000 cr
The public issue by the private life insurer involves its promoters offloading up to 12 crore equity shares of face value of Rs 10 each through offer of sale route, SBI Life said
Mumbai: SBI Life on Monday said it has filed initial papers with capital market regulator Sebi to raise Rs Rs 6,500-7,000 crore through an initial public offer (IPO).
The public issue by the private life insurer involves its promoters offloading up to 12 crore equity shares of face value of Rs 10 each through offer of sale route, SBI Life said in a release.
The private insurer becomes the second life insurer in the country after ICICI Prudential Life to go for IPO.
State Bank of India will dilute up to 8 crore equity shares while BNP Paribas Cardif S A will offload up to 4 crore equity shares.
Sources said the SBI Life is looking at raising Rs 6,500-7,000 crore through the issue. "This offer includes a reservation of up to 2,000,000 Equity Shares (constituting up to 0.2 per cent of the post-offer paid-up share capital) for purchase by eligible employees at a discount on the offer price and a reservation of up to 12,000,000 equity shares (constituting up to 10 percent of the offer) for purchase by State Bank shareholders for cash at a price per equity share," SBI Life said.
The offer would constitute up to 12 percent of the post-offer paid-up share capital and the net offer shall constitute 10.60 percent of the post-offer paid-up share capital, it added.
The Book Running Lead Managers to the offer are JM Financial Institutional Securities, Axis Capital, BNP Paribas, Citigroup Global Markets India, Deutsche Equities India, ICICI Securities, Kotak Mahindra Capital Company and SBI Capital Markets.
The shares are proposed to be listed on the BSE and the NSE. SBI Life's New Business was at Rs 10,368 million in 2016-17.
The company is a joint venture between State Bank and BNPPC, an insurance subsidiary of BNP Paribas.
As of 30 June, 2017, the company had a comprehensive product portfolio of 37 individual and group products, including a range of protection and savings products to address the insurance needs of diverse customer segments.
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The SEBI, in its letter of approval, listed a number of conditions in accordance to the Composite Scheme of Arrangement. The regulatory body has also referred to the apprehensions raised by Amazon.
Price range of the offer was fixed at Rs 25 to Rs 26 per share. Ahead of the IPO, IRFC had raised about Rs 1,400 crore from anchor investors