SBI Life gets Sebi nod for ₹7,500-crore IPO

SBI Life Insurance Co Ltd, a joint venture between State Bank of India and BNP Paribas Cardif, has received the market regulator’s approval for an initial public offering (IPO) to raise around ₹7,500 crore, two people aware of the development said.

The life insurer is looking to launch the IPO on 20 September, the people said on condition of anonymity.

SBI Life filed its share sale prospectus with the Securities and Exchange Board of India (Sebi) in July. According to the document, SBI and BNP Paribas will sell 80 million and 40 million shares respectively, amounting to a combined 12% stake.

“SBI Life received the Sebi approval for its IPO on Thursday. The company plans to launch its IPO on 20 September. The issue will close on September 22,” said one of the two persons cited above.

SBI Life did not respond to on queries on its IPO plan.

The insurer 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 & Co. LP and Temasek Holdings Pte. Ltd for around ₹1,794 crore. The transaction valued the company at ₹46,000 crore.

Incorporated in 2001, the company offers a range of life insurance and pension products.

As of June 30, SBI Life had a portfolio of 37 individual and group products, including protection and savings products to address the insurance needs of diverse customer segments.

SBI Life Insurance managed assets under management (AUM) of ₹97,736.6 crore as of March 31. The company reported a profit of ₹954.65 crore in 2016-17.

Also on Thursday, ICICI Lombard General Insurance Co said in a statement to the stock exchanges that it will launch its IPO on September 15. The company is seeking to raise around ₹6,000 crore.