SBI Life garners Rs 2,226-cr from anchor investors; IPO opens

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

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.

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 to the exchanges.

SBI Life Insurance is a joint venture between India's largest lender State Bank of India (SBI) and BNP Paribas Cardif (BNPPC) -- the insurance holding company of France.

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. SBI will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore shares.

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.

The initial share sale offer, which opened for public subscription today, will close 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.

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.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)