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SBI postpones IPO for general insurance arm by a year to FY21

SBI chairman Rajnish Kumar said that they would like to wait one more to bring out the IPO

August 02, 2019 / 05:29 PM IST
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The proposed initial public offering (IPO) of SBI General Insurance has been postponed to the next year. In the post earnings call of State Bank of India (SBI), the bank's Chairman Rajnish Kumar said they would like to wait one more year to bring out the IPO.

Now it is likely that the IPO will happen in FY21.

Earlier, the plan was to list SBI General on the stock exchanges in FY20. An earlier deal had valued SBI General at Rs 12,043.25 crore.

SBI General Insurance is a joint venture between IAG and State Bank of India. SBI holds 70 percent in the venture while IAG holds 26 percent.

"We are waiting for a movement on the IAG exit. In those circumstances, it is advisable to wait for one more year. Let this transition happen. IAG is evaluating currently, it is yet to come to finality," said Kumar.

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IAG had earlier in 2019 expressed interest to exit the general insurance venture. A slew of private equity firms had expressed interest to buy IAG's stake in the venture.

In a recent interaction with Moneycontrol,  Pushan Mahapatra, MD & CEO, SBI General Insurance had said that the IPO would happen at an appropriate time and it is still early to talk about preparations.

SBI General's profit after tax dropped to Rs 75 crore in Q1FY20 compared to Rs 113 crore in Q1FY19. Its market share increased to 3.11 percent from 2.70 percent last year.

The insurer collected gross direct premium of Rs 1,277.31 crore in Q1FY20, a 26.56 percent year-on-year growth.
Moneycontrol News
first published: Aug 2, 2019 03:38 pm
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