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Sep 13, 2017 03:24 PM IST | Source: Moneycontrol.com

SBI Life's Rs 8400 crore IPO to be the largest insurance listing

The IPO opens on September 20 and closes on September 22. The insurer is a joint venture between State Bank of India (SBI) and BNP Cardif who will dilute 8 percent and 4 percent, respectively.

 
 
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SBI Life Insurance, which has set a price band of Rs 685 to Rs 700 per share for its Rs 8400 crore initial public offering (IPO), is expected to be the largest in the insurance space as of today.

The IPO opens on September 20 and closes on September 22. The insurer is a joint venture between State Bank of India (SBI) and BNP Cardif who will dilute 8 percent and 4 percent, respectively.

This includes an initial public offer of up to 120 million equity shares of face value of Rs 10 each through an offer for sale by State Bank of India and BNP Paribas Cardif where each will be selling up to 80 million equity shares and up to 40 million equity shares, respectively.

The book-running lead managers to the offer are JM Financial Institutional Securities Limited, Axis Capital Limited, BNP Paribas, Citigroup Global Markets India Private Limited, Deutsche Equities India Private Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited.

In FY17, SBI Life's embedded value was Rs 16,537.9 crore as of March 31, 2017. Their value of new business was Rs 1037 crore while annualised premium equivalent stood at Rs 6727 crore for FY17.

ICICI Lombard's IPO opens on Friday and the insurer is expected to raise around Rs 5700 crore through the issue which will go into ICICI Bank's books.

At present, ICICI Prudential Life Insurance is the only insurance company to be listed on the Indian stock exchanges. It made a debut last year with a Rs 6000 crore IPO.

It is anticipated that public sector general insurance companies will be the next in the list for bringing out an IPO and it may come out around mid-October.
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