MUMBAI/CHENNAI: The Insurance Regulatory and Development Authority of India has approved SBI Life Insurance Co Ltd’s application for an initial public offering (IPO), which is likely to be worth rs.6,000-7,000 crore, the largest public share sale thus far in the life insurance business. An IRDAI official said on condition of anonymity that the insurance regulator approved SBI Life’s IPO a few days back.
SBI Life, which will be the second insurer after ICICI Prudential Life Insurance Co Ltd, to get listed, has appointed BNP Paribas, Citibank, Kotak Investment Bank and Axis Capital as the book running lead managers for its proposed IPO.
Two people with direct knowledge of SBI Life’s IPO plans said the company could sell shares amounting to a 12% stake, raising rs. 6,000-7,000 crore.
SBI Life is a joint venture between State Bank of India (SBI) and BNP Paribas Cardif. SBI holds 70.1% and BNP Paribas Cardiff 26%. Private equity firm KKR and Singapore government owned investment company Temasek hold 1.95% each in the life insurer.
SBI Life collected the highest first-year premium among private insurers in the last fiscal. According to Irdai, the insurer’s first-year premium went up 43% to rs.10,145.76 in 2016-17. The company’s total premium grew by 32.79% to rs. 21,015.13 crore.
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