SBI, which holds 70.1% stake in the company, will sell 8% while BNP will offload 4%. Ltd and SBI Capital Markets Ltd to manage the IPO. SBI Life will list on the exchanges on October 3. The price band has been set at ₹685-700 an equity share with a minimum bid of 21 equity shares.
India's SBI Life Insurance Co. plans to raise as much as 84 billion rupees ($1.30 billion) this month in what could be the largest initial public offering in the south Asian nation in seven years. "In IPO, you have greater liquidity and so the valuation is higher than a minority stake sale in a private deal", said Arundhati Bhattacharya, chairman, State Bank of India at a press conference on Wednesday.
"At this point of time, we do believe we can make faster provisioning if we get more of these kinds of capital back in the bank", Bhattacharya told reporters. Arijit Basu, managing director and chief executive officer, SBI Life said, this was pure divestment and at this moment, the company had adequate capital which was sufficient for the next three years.
This includes an initial public offer of up to 120 million equity shares of face value of Rs 10 each through an offer for sale by State Bank of India and BNP Paribas Cardif where each will be selling up to 80 million equity shares and up to 40 million equity shares, respectively.
As of 31 March, SBI Life Insurance had assets under management (AUM) of Rs97,736.6 crore, up 37% from a year ago. ICICI Prudential stock has since surged 30% on the BSE. BNP has 26% stake in the company now. According to data from Prime Database Group, about 539 billion rupees worth of IPOs and follow-on offerings for this financial year are awaiting approval from the market regulator.