SBI Life Insurance may offer 10 per cent stake in the Initial Public Offering (IPO) when it goes to capital markets, said a top executive of the company here today.
“Finally whether an IPO will happen or when it will happen we have not still decided. But there is a possibility that it may happen in the coming financial year that is 2017-18. So in IPO, when you go to market for the first time you offer ten per cent,” Arijit Basu, MD and CEO, SBI Life said in a press conference.
SBI Life Insurance is a joint venture between State Bank of India and BNP Paribas Cardif. SBI owns 74 per cent of the total capital and BNP Paribas Cardif the remaining 26 per cent stake. The insurer has an authorised capital of Rs 2,000 crore and a paid up capital of Rs 1,000 crore.
Early December, State Bank of India had sold 3.9 per cent of its stake in SBI Life to global private equity major KKR and the Singaporean sovereign fund Temasek Holdings for Rs 1,794 crore or USD 264 million, valuing the third largest private life insurer at around Rs 46,000 crore.
Replying to a query, Basu said the picture is still unclear whether SBI will dilute entire ten per cent or five per cent each by both the partners.
“If the SBI is to divest the entire ten per cent then its stakes comes down to 60 per cent from the existing 70 per cent,” he added.
He said the company grew at 39 per cent in individual new premium till December whereas the industry grew at 20 to 22 per cent.
Basu said the market share of the company has gone to 21 per cent as on December last year from 18 per cent in the previous year.
According to him, Assets Under Management currently pegged at Rs 92,000 crore. SBI Life today inaugurated its new Regional Office here.
(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)