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Wednesday, September 13, 2017

SBI Life Insurance Co. IPO Opens On Sep 20,2017

SBI Life Insurance Co., the pure-play life insurance unit of the biggest Indian lender, State Bank of India, will launch its Initial Public Offer (IPO) on September 20,2017

The offering is touted to be the largest by a state-run company in seven years after Coal India’s $2.4 billion IPO in 2010. 

The SBI Life IPO comes amid other insurers also going public. ICICI Lombard’s Rs.  5,700 crore IPO is set to open later this week. 

State-run reinsurer General Insurance Corp of India (GIC Re) and non-life insurer New India Assurance Co Ltd have also filed for IPOs recently.


10 Things You Need To Know About The SBI Life IPO


1) The price band for the IPO has been fixed at Rs. 685-700 per share, SBI Life said in a regulatory filing on Tuesday Sep 12,2017

2) At the upper end of the price band, SBI Life is expected to raise Rs. 8,400 crore.

3) The IPO will remain open for three days and will see promoters offloading up to 12 crore shares of face value of Rs. 10 each through the offer of sale route, the filing said.

4) While state-run SBI is selling up to an 8 per cent stake, or 80 million shares, in SBI Life,  private stake holder BNP Paribas Cardif is selling up to a 4 per cent stake, or 40 million shares.

5) SBI said an employee discount of Rs. 68 will be offered per share to eligible employees in the IPO according to the BSE filing.


6) SBI Life's IPO is set to be the biggest since state-run Coal India's Rs. 15,500 crore IPO in 2010.

7) 2017 is expected to be a record-setting year for IPOs, with fund raising predicted to exceeding 2010's high of $8.5 billion. The country has already seen more than $3 billion in IPOs this year, according to Thomson Reuters data

8) SBI Life has a share capital of Rs. 1,000 crore. The company has seen its net worth increase to Rs. 5,552 crore from Rs. 4,733 crore in the last fiscal year.

9) Citi, Deutsche Bank, Axis Capital, BNP Paribas, JM Financial, ICICI Securities, Kotak Investment Banking and SBI Capital Markets are the book running lead managers to the issue.

10) ICICI Prudential Life Insurance's Rs. 6,057 crore IPO in 2016 was the first public offering by an Indian insurer.

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