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Business News/ Market / Stock-market-news/  SBI Life Insurance IPO next week, price band at Rs685-700 per share
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SBI Life Insurance IPO next week, price band at Rs685-700 per share

The SBI Life Insurance IPO will see stakeholders SBI and BNP Paribas Cardif sell 8% and 4% stake to raise Rs5,600 crore and Rs2,800 crore at the upper end of the price band

The SBI Life Insurance IPO is expected to raise Rs8,400 crore at the upper end of the price band of Rs685-700 per share. Photo: iStockphotoPremium
The SBI Life Insurance IPO is expected to raise Rs8,400 crore at the upper end of the price band of Rs685-700 per share. Photo: iStockphoto

Mumbai: 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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ABOUT THE AUTHOR
Swaraj Singh Dhanjal
" Based in Mumbai, Swaraj Singh Dhanjal is responsible for Mint’s corporate news coverage. For the past eight years he has been writing on the biggest deals in private equity, venture capital, IPO market and corporate mergers and acquisitions. An engineer and an MBA, he started his journalism career in 2014 with Mint. "
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Published: 12 Sep 2017, 08:08 PM IST
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