SBI Life Insurance IPO launch may happen later this month, likely to fetch Rs. 8000 crores

0
371

In the third week of this month, State Bank of India will most likely launch the public offering or IPO of its insurance arm, SBI Term Life Insurance. With the IPO the PSU bank aims at raising about Rs. 8000 crores.

The company has already applied for approval from the Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority of India (IRDAI) and it would take place this week.

Three other firms have also filed their papers for IPO for their respective insurance arms. Together they stand at an estimated value of Rs. 20000 crores.

SBI aims at selling 12% of the equity shares as part of the IPO. The bank will dilute 8% of its stakes in SBI Life along with another 4% held by BNP Pariba Cardif, together accounting for 12%.

State Bank of India holds the majority of shares in SBI life at 70.1% and is followed by Cardif which holds 26% of the stocks. Back in the year 2016, State Bank of India sold the remaining 3.9% to Temasek Holdings, a Singapore based investing company. At that time, the shares fetched SBI about Rs. 46000 crores.

LEAVE A REPLY

Please enter your comment!
Please enter your name here