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SBI Life Insurance IPO to open on September 20

Thursday, September 14, 2017

SBI Life Insurance, a subsidiary of the country's largest lender SBI, will hit the capital market on September 20 to raise up to Rs 8,400 crore. The offer will open on September 20 and close on September 22.

"Recently, we had launched a 'Sampoorn Cancer Suraksha', which is a critical care product. Going forward, we are planning to bring out more protection products, including critical care plans," Arijit Basu, MD and CEO, SBI Life Insurance said.

He said, this is pure divestment and at this moment the company has adequate capital, which is sufficient for the next three years. "The capital requirement is adequate and we will not require any more funds for the next three years. This is pure divestment," Basu added.

SBI Life, which holds 20% market share of the private life insurance business in the country, will more or less maintain 50:50 balance of market-linked and traditional product portfolio.

State Bank of India chief Arundhati Bhattacharya, who was present on the occasion, said the funds raised will go back to the promoters. "The capital raised will go back to the promoters. This will enhance SBI's brand name and provide liquidity to the existing shareholders," she added.

When asked about listing of other subsidiaries, Bhattacharya said, SBI will not take that long to unlock value of any other subsidiaries. "Yes we have taken 23 years to come back to the market again. But I can assure you it won't take that long for the next of our offspring to come to the market," she added.

The price band for the offer as decided by SBI Life and the selling shareholders, in consultation with the lead managers, has been fixed between Rs 685 to Rs 700 per share of Rs 10 each.

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, as per the draft offer documents.

State Bank of India (SBI) will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore. SBI Life Insurance is a joint venture between India's largest lender SBI and BNP Paribas Cardif (BNPPC) -- the insurance-holding company of France.

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