SBI Life plans IPO; SBI to dilute 10% stake in insurer

The State Bank of India (SBI) on Friday said it planned to dilute 10 per cent of its stake in the life insurance venture, SBI Life, through a public offer. The Executive Committee of the Central Board in its meeting held on Friday accorded in-principle approval for the initial public offer (IPO), the SBI said in a regulatory filing to stock exchanges. SBI Life Insurance is a joint venture between the bank and BNP Paribas Cardif. The SBI owns 74 per cent of the total capital and BNP the rest.

State Bank of India (SBI) on Friday said it plans to dilute 10 per cent of its stake in insurance venture SBI Life through public offer.

The executive committee of central board accorded inprinciple approval for initial public offer (IPO) of shares, SBI said.

SBI Life Insurance is a venture of the bank and BNP Paribas Cardif. SBI owns 74 per cent of the total capital and BNP the rest. BNP ruled out increasing its stake in SBI Life to 49 per cent ahead of the proposed initial public offering slated for next year.

The insurer has an authorised capital of ~2,000 crore and a paid-up capital of ~1,000 crore. SBI had last year sold 3.9 per cent stake in SBI Life to global private equity major KKR and the Singaporean sovereign fund Temasek Holdings for ~1,794 crore or $264 million, valuing the country's thirdlargest private life insurer at ~46,000 crore.