SBI Life Insurance, the insurance arm of State Bank of India will open up to initial public offering or IPO on the 20th of September. The intention of joining the capital market is to raise Rs. 8400 crores and also benefit from listing their equity shares on the exchanges.
The initial offer for sales of shares will be open from 20th of September till the 22nd of September as per documents filed with the stock exchanges.
ICICI Prudential was the first insurance company to go public last year and SBI Life Insurance will follow in its footsteps.
The price that SBI has fixed for the initial offering is between Rs. 685-700. Taking into account the upper band of the price, SBI Term Insurance expects to raise Rs. 8400 crores.
As per documents filed by SBI Life Insurance, 12 crores shares will be offloaded with a face value of Rs. 10.
Out of the 12 crores shares in contention, SBI will dilute 8 crores shares in SBI Life Insurance, whereas BNP Paribas Cardif will offload approximately 4 crores shares.
Currently, SBI holds 70.1% shares in SBI Life and BNP Paribas Cardif owns 26%.