SBI Life gets ready for a big IPO this year, may raise Rs 8500-9000 cr

M Saraswathy Moneycontrol News

SBI Life Insurance, which has filed the draft red herring prospectus (DRHP) with Securities and Exchange Board of India (Sebi), is likely to bring out the largest initial public offering (IPO) in the insurance space. Sources said that the insurer could raise as much as Rs 8500-9000 crore from the IPO.

Once listed, this would be the second life insurer after ICICI Prudential Life Insurance to be listed on the stock exchanges.

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.

Further, it also includes a reservation of up to 2 million equity shares (constituting up to 0.2 percent of the post-offer paid-up share capital) for purchase by eligible employees at a discount on the offer price and a reservation of up to 12 million equity shares (constituting up to 10 percent of the offer) for purchase by SBI shareholders.