IRDA grants in-principle approval to SBI Life IPO

Insurance regulatory body, Insurance Regulatory and Development Authority (IRDA) granted its in-principle approval to SBI Life Insurance’s IPO, according to a leading business news portal.  

SBI Life Insurance is expected to file its draft red herring prospectus (DRHP) with the capital market overseer SEBI in the coming weeks.  

SBI Life Insurance is a joint venture between India’s largest state owned bank, State Bank of India and BNP Paribas Cardiff. SBI has a shareholding of 70.1 per cent in the insurance company and BNP Paribas Cardiff holds 26 per cent shares. Whereas, private equity firm KKR and Singapore-state owned investment company Temasek holds 1.95 per cent each in SBI Life Insurance.

The insurance company will be approaching the insurance regulator again for the final approval after securing SEBI’s approval.

SBI Life Insurance is expected to raise funds worth Rs 7,400-8,500 crore through the initial public offering, which is valued at Rs 65,000-70,000, according to the market sources.    

The SBI Life Insurance IPO will be the second direct listing of an insurance company, after the listing of ICICI Prudential Life Insurance last year. ICICI Prudential Life Insurance is the only listed insurance company of India.