SBI Life Insurance to list by September
State Bank of India (SBI) has decided to sell 12 per cent stake in its life insurance venture, SBI Life via initial public offering (IPO). SBI Life is looking to list by September, 2017.
In the process, SBI will sell 8 per cent in the life insurance joint venture. The company is a joint venture between SBI and BNP Paribas Cardif. In April, the company had invited proposals from merchant bankers and law firms for selection of book running lead managers for IPO.
In December 2016, SBI had sold 39 million shares in SBI Life to KKR and Temasek at Rs 460 apiece, valuing the company at Rs 46,000 crore. After the last deal, SBI owns 70.1 per cent while BNP Paribas holds 26 per cent and remaining with KKR and Temasek.
On the financial front, SBI Life Insurance’s net profit increased 31 per cent to Rs 336 crore in Q4FY17 as compared to the same period in the previous fiscal year. The company’s individual new business premium (APE) rose by 40 per cent to Rs 2213 crore in Q4FY17 on a yearly basis.