SBI Life Insurance's much-awaited initial public offer (IPO), which is expected to raise up to Rs 8,400 crore opened today. This would be the country's first billion-dollar IPO in nearly seven years.
SBI Life's IPO is the biggest since state-run Coal India's 155 billion rupee ($2.4 billion) IPO in 2010 and market participants expect 2017 to be a record-setting year for India, with fund-raising from IPOs exceeding 2010's $8.5 billion.
Here are your five point guide to know everything about the IPO
1. SBI Life Insurance Company has raised Rs 2,226 crore from anchor investors as its initial share sale opened for public subscription today. BlackRock, Canada Pension Fund, Government of Singapore, Abu Dhabi Investment Authority, HSBC, HDFC MF, ICICI Prudential MF, Kotak MF, Reliance MF, Axis MF and UTI MF are among the 69 anchor investors.
2. The leading insurer would allot 3.18 crore shares to 69 anchor investors at an average price of Rs 700, garnering Rs 2,226 crore to the company, SBI Life informed to the exchanges.SBI Life Insurance is a joint venture between India's largest lender State Bank of India (SBI) and BNP Paribas Cardif (BNPPC) -- the insurance holding company of France.
3. The insurer is looking to raise about Rs 8,400 crore at the higher end of the price band which is fixed between Rs 685-700 per share. The initial share sale offer, which opened for public subscription today, will close on September 22.
4. SBI holds 70.10 per cent in SBI Life and BNPPC 26 per cent. Minority shareholders Value Life Pte, an affiliate of KKR Asian Fund and MacRitchie Investments Pte, a wholly-owned subsidiary of Temasek Holdings, hold 1.95 per cent each.
5. According to SBI Life, the listing of equity shares will enhance its brand name and provide liquidity to the existing shareholders. The listing will also provide a public market for equity shares in India.
(With inputs from PTI)
