Rs8,500-crore SBI Life Insurance IPO receives Sebi approval

Mumbai: 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 Rs8,500 crore, three 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 22 September,” said one of the two persons cited above.

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

The insurance company 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, the company offers a range of life insurance and pension products.

As of 30 June, SBI Life 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.

Also on Thursday, ICICI Lombard General Insurance Co. Ltd said in a statement to the stock exchanges that it would launch its initial public offering on 15 September. The company is seeking to raise around Rs,6,000 crore.

The IPO of the non-life insurance joint venture between ICICI Bank Ltd and Fairfax Financial Holdings Ltd, will see the two shareholders sell a combined 19% stake through the IPO.

SBI Life and ICICI Lombard are not the only insurance companies looking to go public.

Last month, state-owned reinsurance company General Insurance Corp. of India (GIC) filed its share sale prospectus.

GIC is likely to raise over Rs10,000 crore, Mint reported on 8 August. The government plans to sell 107.5 million shares in the IPO, while the company will issue around 17.2 million new shares to raise primary capital. GIC intends to use the primary proceeds for augmenting its capital base.

Also in August, New India Assurance Co. Ltd (NIA) filed the prospectus for its initial share sale. This IPO too is expected to raise Rs10,000 crore.

Other insurance companies that are looking to go public include HDFC Standard Life Insurance Co Ltd and Reliance General Insurance Ltd, the non-life insurance arm of Reliance Capital Ltd.