SBI clears SB Life IPO, to sell 80 mln shares

State Bank of India said it had decided to conduct an initial public offer for some of its shares in its insurance subsidiary SB Life Insurance. BNP Paribas Cardif S.A. would also sell some of its shares in the offer.

It said the offer would involve 8 crore shares.

No valuation or size details were announced.

However, other reports have indicated a size of Rs 7,000 crore for the IPO, which would make it the biggest in the sector.

SBI Life is supposed to have hired Citi, Kotak Investment Bank and Axis Capital to manage the IPO, which would dilute its equity base by about 12%, according to reports.

SBI Life is a joint venture between State Bank of India (SBI) and BNP Paribas Cardif.

SBI holds 70.1% and BNP Paribas Cardiff 26%.

Private equity firm KKR and Singapore-government owned investment company Temasek hold 1.95% each in the life insurer.