Receives bids for 5.06 crore shares
The initial public offer (IPO) of SBI Life Insurance Company (SBI Life) received bids for 5.06 crore shares on the second day of bidding for the IPO, data on NSE showed as at 17:00 IST. The IPO was subscribed 0.57 times. The IPO opened for subscription on 20 September 2017 and closes on 22 September 2017. The price band for the IPO is Rs 685 to Rs 700 per share.
Ahead of the opening of the IPO, SBI Life raised Rs 2226 crore by selling 3.18 crore shares to a total of 69 anchor investors. The shares were allotted to the anchor investors at Rs 700 per share, the top end of the Rs 685 to Rs 700 per share price band for the IPO.
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 (SBI) will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore shares. SBI holds 70.10% in SBI Life and BNP Paribas Cardif (BNPPC) holds 26%.
There is a discount of Rs 68 per share on offer price to eligible employees. The offer would constitute up to 12% of the post-offer paid-up share capital and the net offer shall constitute 10.60% of the post-offer paid-up share capital.
SBI Life Insurance Company is India's largest private life insurer in terms of new business premium (NBP) and a subsidiary of India's largest bank - State Bank of India in terms of deposits, advances and number of branches, which is also among world's top 50 banks in terms of assets. The company was established as a joint venture between the State Bank of India and BNPPC in 2001.
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