SBI Life Insurance, a subsidiary of the SBI will hit the capital market on September 20. SBI Life Insurance is a joint venture between SBI and BNP Paribas Cardif (BNPPC) the insurance holding company of France.
Here are seven things to know about this IPO:
SBI Life's IPO is set to be the biggest since state-run Coal India's Rs. 15,500 crore IPO in 2010. SBI Life has a share capital of Rs 1,000 crore. The company has seen its net worth increase to Rs 5,552 crore from Rs 4,733 crore in the last fiscal year.
The price band for the IPO has been fixed at Rs 685-700 per share. At the upper end of the price band, SBI Life is expected to raise Rs 8,400 crore. 6 Biggest Mistakes Stock Market Investors Makes
The IPO will remain open for three days. The initial share sale offer will open on September 20 and close on September 22 and will see promoters offloading up to 12 crore shares of face value of Rs 10 each through the offer of sale route.
India's largest lender SBI is selling up to an 8 per cent stake, or 80 million shares, in SBI Life. Private stake holder BNP Paribas Cardif is selling up to a 4 per cent stake, or 40 million shares.
An employee discount of Rs 68 will be offered per share to eligible employees in the IPO according to the BSE filing, SBI said.
Citi Bank, Deutsche Bank, Axis Capital, BNP Paribas, JM Financial, ICICI Securities, Kotak Investment Banking and SBI Capital Markets are the book running lead managers to the issue. IPO Alert: SBI Life Gets SEBI Nod For IPO
Life insurers IPO
SBI Life's IPO would be the second listing of a life insurer after ICICI Prudential Life Insurance. ICICI Prudential Life Insurance's Rs 6,057 crore IPO in 2016 was the first public offering by an Indian insurer.