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SBI Life to take a call on listing in Q1 FY18

Our Bureau Hyderabad | Updated on January 12, 2018 Published on January 30, 2017

bl31_Arijit Basu

May divest 10% stake; while SBI holds 70.1% equity, BNP Paribas has 26%

SBI Life will take a call on when to go for a public issue in the first quarter of 2017-18 and dilute about 10 per cent of the equity to the public. It, however, is not clear whether one or two of the joint venture partners — SBI and BNP Paribas Cardif — will dilute their stakes when the public issue happens.

“The IPO is likely to happen next financial year. We will take a decision on the IPO in the first quarter of next financial year,” said Arijit Basu, MD and CEO of SBI Life.

While SBI holds 70.1 per cent, the JV partner holds the remaining 26 per cent. The SBI sold 3.9 per cent in December last to two investors Temasek and KKR at ₹460 a share, which reduced its stake to 70.1 per cent from 74 per cent. The firm was valued at ₹46,000 crore at that time. The firm has an authorised capital of ₹2,000 crore and a paid-up capital of ₹1,000 crore.

Will SBI dilute further 10%

Addressing reporters here on Monday, Arijit Basu said it was not clear whether it would be SBI or the joint venture that would dilute stake and what percentage when the firm goes for the issue. “If SBI dilutes a further 10 per cent, its stake would come down to 60 per cent. The two JV partners might go for dilution of 5 per cent each. All these factors not known yet,” he said.

He was here as the Regional Office moved to a swanky office space on Raj Bhavan Road. The region contributed 14 per cent to the firm’s national business, surpassing even that of Delhi and Mumbai regional offices.

Demonetisation

He said demonetisation had neither reduced its business or increased it. “There is no upswing or downswing. Growth in the first two quarters, which are generally muted growth quarters, is very high.”

He said the assets under management would be around ₹92,000 crore at the end of March 31, 2017, as against ₹79,000 crore. “The targets for the next financial year are not set yet,” he said.



Published on January 30, 2017
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