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SBI Life Insurance, the subsidiary of country's largest lender State Bank of India, has filed draft red herring prospectus with capital market regulator SEBI for initial public offering, reports CNBC-TV18.
The insurance company will sell up to 12 crore equity shares through public issue.
SBI will sell up to 8 crore shares or 8 percent stake in the insurance unit while BNP Paribas Cardit will sell up to 4 percent stake or 4 crore shares, according to prospectus.
SBI Life Insurance is a joint venture between State Bank of India (SBI) with 74 percent stake and BNP Paribas Cardif with the remaining 26 percent.
The book running lead managers to the issue are Citi, Deutsche Bank, Axis Capital, BNP Paribas, JM Financial, ICICI Securities, Kotak Investment Banking and SBI Capital Markets.
Recently Insurance Regulatory and Development Authority has given an in-principle approval for the IPO of SBI's life insurance subsidiary.
SBI Life would be the second direct listing of an insurance company. So far ICICI Prudential Life Insurance (which started trading in September last year) is the only insurance company listed on exchanges.
It has market share of 17.3 percent in private insurance space and a total market share of 5.1 percent for the financial year 2015-16.
The company posted a profit of Rs 861 crore in FY16, registering a growth of 5 percent over previous year.
Last week, ICICI Lombard General Insurance filed DRHP with SEBI for an IPO. It will be the first IPO by a non-life insurance company in India.
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