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SBI Life Insurance has set the ball rolling for its proposed initial public offering by inviting applications for appointment of merchant bankers, domestic and international legal counsel.
It may be recalled that the Executive Committee of the Central Board of State Bank of India (SBI) had on March 25 announced its plan to dilute 10 per cent of its stake in the life insurance venture through the IPO route.
The SBI board has given approval to “initiate the process for offer-for-sale of 10 per cent of shares through initial public offer,” SBI had then said in a regulatory filing to stock exchanges.
Indications are that SBI Life Insurance would not raise fresh capital through the proposed IPO.
SBI Life Insurance is a joint venture between SBI and BNP Paribas Cardiff. While SBI owns 70.1 per cent, BNP Paribas Cardiff holds 26 per cent stake. Last year, global private equity major KKR and Singapore’s sovereign wealth fund Temasek Holdings had acquired 3.9 per cent stake in SBI Life for a consideration of ₹1,794 crore.
BNP Paribas Cardiff had ruled out increasing its stake in SBI Life to 49 per cent ahead of the proposed IPO.
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