SBI Life Insurance collects Rs 2,226 crore from anchor investors ahead of IPO

SBI Life Insurance on Tuesday raised Rs 2,226 crore from anchor investors as its initial share sale opened for public subscription today.

The initial public offer (IPO) of the private life insurance firm jointly owned by State Bank of India and BNP Paribas Cardif SA will end on September 22.

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.

During the IPO, State Bank of India (SBI) will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore shares.

After the listing of ICICI Prudential Life Insurance last year, SBI Life will become the second life insurer to go public.

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 for the IPO of the private sector insurer.

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 the exchanges.

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.

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.

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. Besides, the IPO of ICICI Lombard General Insurance Company closed today. In 2016, ICICI Prudential Life Insurance became the country's first listed insurer after its Rs 6,000 crore public issue.