India: SBI Life Insurance to launch $1.3b IPO on September 20

Photo: Pradeep Gaur/ Mint

State Bank of India on Tuesday said that its life insurance joint venture—SBI Life Insurance Co. Ltd—has fixed a price band of Rs685-700 per share for its initial public offering (IPO). The SBI Life Insurance IPO will be launched on 20 September, according to SBI’s filing with the stock exchanges on Tuesday.

The IPO will see SBI and its joint venture partner BNP Paribas Cardif SA sell 8% and 4% of their stake in the life insurance firm. At the upper end of the price band, SBI will fetch Rs5,600 crore from its stake sale, while BNP Paribas Cardif will earn Rs2,800 crore. The total offer size is worth Rs8,400 crore.

SBI Life Insurance has hired JM Financial Institutional Securities Ltd, Axis Capital Ltd, BNP Paribas, Citigroup Global Markets India Pvt. Ltd, Deutsche Equities India Pvt. Ltd, ICICI Securities Ltd, Kotak Mahindra Capital Co. Ltd and SBI Capital Markets Ltd to manage the share sale.

In December, it sold a 3.9% stake to investors KKR and Co. LP and Temasek Holdings Pte Ltd for around Rs1,794 crore. The transaction valued the company at Rs46,000 crore.

Incorporated in 2001, SBI Life Insurance offers a range of life insurance and pension products. As of 30 June, it had a portfolio of 37 individual and group products, including a range of protection and savings products to address the insurance needs of diverse customer segments.

SBI Life Insurance had assets under management (AUM) of Rs97,736.6 crore as of 31 March. The company reported a profit of Rs954.65 crore in financial year 2016-17.

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