State Bank of India on Thursday informed the bourses that its board will consider stake sale of 12 per cent in SBI Life. Of that, State Bank of India will sell 8 per cent and BNP Paribas Cardif will sell 4 per cent.
In a BSE filing, SBI said, “Executive committee of Central Board (ECCB) in its meeting held today on 11th May 2017 has accorded in-principal approval of partial modification of earlier approval for exploring possibility of diluting stake of SBI in SBI LIfe through Initial Public Offer (IPO).”
SBI Life told ET Now after the news that it has started process of appointing investment bankers, legal counsel for the initial public offer. According to Reuters, it is set to hire eight banks including Citigroup, Deutsche Bank and BNP Paribas to manage its up to $1 billion initial public offering of shares.
The company also told the business news channel that the markets is SBI LIfe very positively and it expects to arrie at FY17 embedded value by end of the May.
SBI Life will be the second life insurance company after ICICI Prudential life Insurance to list. State Bank of India owns 70.1 per cent of SBI Life, while BNP Paribas Cardif owns 26 per cent. KKR and Temasek own 1.95 per cent each.
An earlier report had said that it will go a stake sale of 10 per cent.
SBI Life Insurance on May 3 posted 31 per cent growth in net profit at Rs 336 crore in the fourth quarter of 2016-17. The private insurer’s net stood at Rs 256 crore in the corresponding quarter of last year. Its individual new business premium (APE) rose 40 per cent to Rs 2,213 crore during the last quarter of FY17 from Rs 1,586 crore in the same period last year. The gross total premium received in FY17 was Rs 21,015 crore, up from Rs 15,825 crore in the same period last year.
With PTI and Reuters inputs