Friday, September 15, 2017

SBI Life Insurance IPO Opens with Price Band at Rs. 685 to Rs. 700 Per Equity Share


SBI Life Insurance Company Limited ("Company" or "Issuer") proposes to open on Wednesday, September 20, 2017, an initial public offering up to 120,000,000 Equity Shares of face value of ₹ 10 each (“Equity Shares”) which comprises of an offer for sale of up to 80,000,000 Equity Shares by State Bank of India (“State Bank” or the “Promoter Selling Shareholder”) and up to 40,000,000 Equity Shares by BNP Paribas Cardif S.A. (the “Investor Selling Shareholder” and together with the Promoter Selling Shareholder, the “Selling Shareholders”) (“Offer”), including a reservation of up to 2,000,000 Equity Shares for purchase by Eligible Employees (as defined in “Definitions and Abbreviations” at page 5 of the red herring prospectus dated September 11, 2017 registered by the Company with the Registrar of Companies, Maharashtra at Mumbai (“RHP”) on September 12, 2017) at a discount of Rs. 68 per Equity Share and a reservation of up to 12,000,000 Equity Shares for purchase by State Bank Shareholders (as defined in “Definitions and Abbreviations” at page 7 of the RHP). The Offer would constitute up to 12% of post-Offer paid-up Equity Share capital and the net offer shall constitute 10.60% of the post-Offer paid-up Equity Share capital.

The Price Band for the Offer is fixed from Rs. 685 per Equity Share to Rs. 700 per Equity Share, with a discount to Eligible Employees of Rs. 68 per Equity Share on the Offer Price. Bids can be made for a minimum of 21 Equity Shares and in multiples of 21 Equity Shares thereafter. The Offer will close on Friday, September 22, 2017.

The Company and the Promoter Selling Shareholders may, in consultation with the book running lead managers to the Offer ("Lead Managers"), consider participation by Anchor Investors. Such Anchor Investors shall Bid during the Anchor Investor Bid / Offer Period; i.e., one Working Day prior to the Bid/Offer Opening Date, on which Bids by Anchor Investors shall be submitted and allocation to Anchor Investors shall be completed.

The Lead Managers are JM Financial Institutional Securities Limited, Axis Capital Limited, BNP Paribas*, Citigroup Global Markets India Private Limited, Deutsche Equities India Private Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited*.

The Equity Shares offered in the Offer proposed to be listed on BSE Limited and National Stock Exchange of India Limited.

The Offer is being made in accordance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“SEBI Regulations”), wherein not more than 50% of the Net Offer shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIBs”), provided that our Company and the Promoter Selling Shareholders may, in consultation with the Lead Managers, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis, out of which one-third shall be reserved for domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price, in accordance with the SEBI Regulations. 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all 

QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price.

Further, not less than 15% of the Net Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI Regulations, subject to valid Bids being received at or above the Offer Price. All potential investors, other than Anchor Investors, are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective bank account which will be blocked by the SCSBs, to participate in this Offer.

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