India's largest bank, the State Bank of India, said it was in the process of appointing eight merchant bankers for SBI Life's IPO in which its promoters- SBI and European insurance major Cardiff are together selling 12 per cent stake. A move that would value the life insurer at over £5 billion. In October 2010, PSU major Coal India mobilised £1.54 billion through its IPO, till date the largest such offer in the country.
Before that, Reliance Power had mobilised about £1.17 billion when it went public in January 2008. SBI Life, once listed, would become the second listed life insurer in India. It is expected to hire Axis Bank, ICICI Securities, Citigroup, BNP Paribas, Deutsche Bank, Kotak, SBI Capital Markets and JM Financial to handle the offer. As it is not looking to raise fresh capital, the IPO will comprise an offer for sale of shares from SBI and Cardiff. Executive committee of the board approved a decision whereby SBI will divest around 8 per cent of its holding, while Cardiff will sell around 4 per cent.
The private life insurer posted a net profit of £95.5 million for FY17, a jump of 11 per cent over £ 86.1 million in FY16.
