SBI Life will become the second life insurer to go public after the listing of ICICI Prudential Life Insurance a year ago.
ICICI Lombard's IPO opens on Friday and the insurer is expected to raise around Rs 5700 crore through the issue which will go into ICICI Bank's books. The price band of the IPO is set at 685 rupees to 700 rupees a share, valuing the company at about 700 billion rupees. "In IPO, you have greater liquidity and so the valuation is higher than a minority stake sale in a private deal", said Arundhati Bhattacharya, chairman, State Bank of India at a press conference on Wednesday. Ltd and SBI Capital Markets Ltd to manage the IPO. "The capital requirement is adequate and we will not require any more funds for the next three years".
SBI, which holds 70.1% stake in the company, will sell 8% while BNP will offload 4%.
SBI Life Insurance will list on the exchanges on October 3, she said.
Arijit Basu, managing director and chief executive of SBI Life Insurance, said the company does not require any fresh capital in the next three years.
JM Financial Institutional Securities, Axis Capital, and Citigroup Global Markets India are among the nine lead managers of the IPO. BNP has 26% stake in the company now.
The insurance sector in India has been steadily expanding in recent years, driven by rising disposable incomes and improving life expectancy rates, as well as a surge in stock market.