SBI Life Insurance and Prataap Snacks are lined up with their respective public offers this week to raise an amount of Rs 8,882 crore. SBI Life Insurance IPO (initial public offer) will hit the capital market on 20 September to raise up to Rs 8,400 crore, at the upper end of the price band. The initial share sale offer will open on 20 September and will remain open until 22 September. This would be the second listing of a life insurer after ICICI Prudential Life Insurance, which went public last year. SBI Life IPO is the largest public offer in last seven years.
The price band for the public offer has been fixed between Rs 685 to Rs 700 per share of face value Rs 10 each, with a discount of Rs 68 per share on the offer price to eligible employees. Investors can bid for the IPO with a minimum of 21 shares. SBI Life’s public issue involves its promoters offloading up to 12 crore shares of face value of Rs 10 each through the offer of sale route. State Bank of India will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore.
Prataap Snacks’ an Indore based snacks maker is estimated to raise up to Rs 482-crore through IPO opening for subscription on 22 September. The issue, with a price band of Rs 930-938 per equity share, will close on 26 September. The Rs 482-crore issue includes Rs 200 crore through fresh equity issue and the rest from the offer for sale.
The company, which makes products under the ‘Yellow Diamond’ brand, will also offer a discount of Rs 90 per share to eligible employees. It aims to use the proceeds to expand its chips making capacity by 50% and double that of namkeens. It will also use the funds for marketing and brand building activities and to retire the debt on its books.