PNB MetLife files DRHP, looks to dilute up to 25% via proposed IPO

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26 Aug, 2025 12:21

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PNB MetLife Insurance has filed the draft red herring prospectus (DRHP) for its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI).

The company looks to dilute up to 25 percent stake through the issue.

Sources told Moneycontrol that the IPO could be around Rs 2,800 crore valuing the company at Rs 11,000 crore.

PNB MetLife is a joint venture between Punjab National Bank (30 percent stake), MetLife (26 percent), Elpro International (21 percent), M Pallonji & Company (18 percent), and Jammu and Kashmir Bank (5 percent).

This will be the fourth life insurer after ICICI Prudential Life Insurance, HDFC Life Insurance and SBI Life Insurance to be listed on the exchanges.

PNB was looking to dilute its stake in the insurance company even as it is looking to reduce bad debt. The bank reported a net loss of Rs 13,416.91 crore for the fourth quarter ending March 2018.

PNB is the largest shareholder in the life insurance company, expects to dilute about 4 percent stake, while MetLife will dilute 6.4 percent. Other shareholders including M Pallonji, Elpro, IGE India and J&K Bank are also diluting their stake.

In May 2018, Electrical equipment manufacturer Elpro International had announced plans to sell 1.33 percent stake in PNB MetLife Insurance for Rs 134.22 crore. The deal had valued the life insurance company at Rs 10,091 crore.

Subject to regulatory approvals, it is likely that the IPO will be launched by mid-September.

Kotak Investment Banking, DSP Merrill Lynch, Citigroup Global Markets India and PNB Investment Services are the book running lead managers to the issue.