The 8,400 crore initial public offering (IPO) of SBI Life is all set to open from Wednesday, today. The IPO by size is expected to be the largest in life Insurance space in India and it would be the second largest insurance company to list on bourses.
SBI Life Insurance IPO to hit market today
The IPO which open s today will close on 22. The equity shares are supposed to be getting listed on both NSE and BSE. The price band has been fixed at Rs 685-700 per equity share of total 12 crores shares which are on sale by the promoters of face value of Rs 10 each.
The 12 crore shares include am offer for sale up to 80 million equity.
The SBI Life Insurance is a joint venture between the bank and BNP Paribas Cardiff. The SBI owns the 74 percent of the total capital and BNP owns the rest. But now after this stake’s sale, the SBI’s stake in the arm came down to 70.1 percent from 74 percent while BNP Paribas Cardiff still holds the 26 percent.
The Price band for SBI Life IPO is Rs 685-700 per equity share with a discount to eligible employees of Rupees 68 per share on the offer price. The Bids can be made for a minimum of 21 equity shares and in multiple of 21 equity shares thereafter. The equity shares will be listed on the BSE and NSE.
In 2016-17, it enjoyed a market share of individual rated premium of 20.69 percent among the private life insurers in India and 11.16 percent of the entire life insurance industry in India. The company reported a profit of Rs. 954.65 crores in 2016-17, up 13 percent from the previous financial years.
Insures has an authorised capital of Rs 2000 crore, and a paid up capital of Rs 1000 crore.