State Bank of India’s (SBI’s) executive committee of the central board has given the final approval for divestment of 80 million shares in SBI Life through an initial public offering (IPO), at a meeting on Monday.
The shares being offered for sale by the country’s biggest lender will be available at a price that would be fixed and determined by SBI Life, SBI, and BNP Paribas Cardiff, in consultation with the book-running lead managers, the lender said in a statement to the BSE.
Last week, SBI Life had submitted its draft papers to the Insurance Regulatory and Development Authority of India (Irdai) for listing, which has been approved in principle by the regulator. It is still awaiting final approval from the Securities and Exchange Board of India, the Reserve Bank of India and the Government of India.
SBI Life will become the country’s second private insurer to go for an IPO after ICICI Prudential Life Insurance, which was valued at Rs 48,000 crore and sold shares worth Rs 6,057 crore in its public offer. ICICI Prudential Life Insurance is currently valued at Rs 69,450 crore and its share price closed at Rs 483.85 on the BSE on Monday.
SBI Life is expected to raise an estimated Rs 7,000 crore from the stake sale via an IPO. Read More