SBI Life Insurance files for IPO to raise Rs 7,000 crore

SBI Life Insurance, a joint venture (JV) between the State Bank of India (SBI) and BNP Paribas Cardif, filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi), the capital markets regulator, for an initial public offering (IPO) of equity shares, on Monday.

The two JV partners are planning to sell up to 120 million shares of a face value Rs 10 each through an offer for sale, which will help them garner well over $1 billion (about Rs 7,000 crore).

The SBI, the country’s largest bank, is selling up to an 8 per cent stake, or 80 million shares, in the unit as part of the IPO. BNP Paribas group is selling up to 4 per cent (40 million shares).

According to the offer document, the SBI holds 70.1 per cent and BNP Paribas 26 per cent in the life insurance company. Value Line Pte. Ltd, an affiliate of KKR Asian Fund L.P., and MacRitchie Investments Pte. Ltd., an indirect wholly owned subsidiary of Temasek Holdings (Private) Ltd, hold a 1.95 per cent stake each in SBI Life, which they had purchased in around December 2016 for Rs 1,794 crore, valuing SBI Life at Rs 46,000 crore.

On December 9, 2016, the SBI informed the Bombay Stock Exchange that the Executive Committee of the Central Board (ECCB) of the bank had approved divesting 39 million equity shares, constituting 3.9 per cent in SBI Life Insurance Company, at Rs 460 per share, subject to regulatory approvals. Read More