SBI chairperson Arundhati Bhattacharya with SBI Life CEO Arijit Basu in Mumbai on Wednesday. (PTI)
Mumbai, Sept. 13: SBI Life Insurance Co will launch next week what will be the country's first billion-dollar initial public offering since 2010, paving the way for a record-setting year for IPOs in the country.
SBI Life, a unit of the State Bank of India (SBI), the country's largest lender, will open the share sale to the public on September 20 and close it on September 22. The shares that will begin trading on October 3 will be sold in a price band of Rs 685-700 apiece.
At the upper end of the price band, the IPO will raise Rs 8,400 crore ($1.3 billion).
The public issue will see the State Bank of India (SBI) diluting up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore shares.
SBI Life Insurance is a joint venture between the SBI and BNP Paribas Cardif (BNPPC). While the SBI holds 70.10 per cent in SBI Life, BNPPC has 26 per cent. Minority shareholders - Value Life Pte, an affiliate of KKR Asian Fund and MacRitchie Investments Pte - a wholly owned subsidiary of Temasek Holdings - hold 1.95 per cent each.
"The capital requirement is adequate and we will not require any more funds for the next three years. This is pure divestment," SBI Life Insurance managing director and CEO Arijit Basu said.
SBI Life will be the second life insurer to get listed on the bourses after ICICI Prudential Life Company which went public last year. The last billion-dollar IPO was from Coal India in 2010.
The country's primary market is already buzzing, with several issues vying for investor attention. IPOs of Capacit'e Infraprojects and Matrimony.com were fully subscribed today.
SBI Life's IPO will be preceded by that of another insurer, ICICI Lombard General Insurance Company, which will open for subscription on September 15 and close on September 19.