SBI Life Insurance Company files DRHP

MUMBAI: SBI Life Insurance Company, a subsidiary of State Bank of India has filed a draft red herring prospectus (DRHP) with Securities and Exchange Board of India (“SEBI”) for an initial public offer to raise upto Rs 7,000 crore, according to bankers.

State Bank of India which owns 70% stake in the company is planning to sell 8 crore or 8% of the equity shares while BNP Paribas Cardif is offloading nearly 4 crore or 4% of the equity.

In December, SBI sold 3.9% of SBI Life Insurance to KKR & Co and Singapore’s Temasek Holdings for Rs 1,800 crore, pegging its value at Rs 46,000 crore.

SBI Life Insurance has appointed JM Financial, Axis Capital, BNP Paribas, Citigroup, Deutsche Equities, ICICI Securities, Kotak Mahindra Capital Company and SBI Capital as bankers.

SBI Life will be the second life insurer to go public after ICICI Prudential Life Insurance.

Friday, ICICI Lombard General Insurance Company had filed draft prospectus with Sebi to dilute around 19% stake through an IPO. ICICI Lombard, a joint venture between ICICI Bank and Canada-based Fairfax Financial Holdings Ltd, will be the first private general insurer to go public with an IPO.