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SBI Life Insurance IPO opens, raises Rs2,226 crore from anchor investors

LiveMint logoLiveMint 20-09-2017 PTI

New Delhi: SBI Life Insurance Co. Ltd has raised Rs2,226 crore from anchor investors as its initial share sale opened for public subscription on Wednesday.

BlackRock, Canada Pension Fund, Government of Singapore, Abu Dhabi Investment Authority, HSBC, HDFC MF, ICICI Prudential MF, Kotak MF, Reliance MF, Axis MF and UTI MF are among the 69 anchor investors.

The leading insurer would allot 3.18 crore shares to 69 anchor investors at an average price of Rs700, garnering Rs2,226 crore to the company, SBI Life informed to the exchanges. SBI Life Insurance is a joint venture between India’s largest lender State Bank of India (SBI) and BNP Paribas Cardif (BNPPC) -- the insurance holding company of France.

SBI Life’s public issue involves its promoters offloading up to 12 crore shares of face value of Rs10 each through the offer of sale route. SBI will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore shares. The insurer is looking to raise about Rs8,400 crore at the higher end of the price band which is fixed between Rs685-700 per share.

The initial share sale offer, which opened for public subscription today, will close on 22 September. SBI holds 70.10% in SBI Life and BNPPC 26%. 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% each.

According to SBI Life, the listing of equity shares will enhance its brand name and provide liquidity to the existing shareholders. The listing will also provide a public market for equity shares in India. Besides, the IPO of ICICI Lombard General Insurance Company closed today. In 2016, ICICI Prudential Life Insurance became the country’s first listed insurer after its Rs6,000 crore public issue.

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