After a wait of seven years, the Indian financial market has witnessed a billion-dollar initial public offering (IPO).
On Sept. 20, SBI Life’s IPO of Rs8,400 crore ($1.3 billion) opened, making it the first financial sector firm to join the billion-dollar club. The last such instance was in 2010, when Coal India sought to raise Rs15,500 crore—it was oversubscribed by 15 times.
Other companies in this big boys’ club are Reliance Power, DLF, Cairn India, National Hydroelectric Power Corporation, National Thermal Power Corporation, and Tata Consultancy Services, according to data compiled by PRIME Database, a capital markets information provider.
SBI Life is a joint venture (JV) between the country’s largest lender, State Bank of India, and BNP Paribas Cardif, the insurance arm of France’s BNP Paribas. While SBI will sell 8% of its stake in the JV, BNP Paribas Cardif will divest 4%. SBI Life shares will be priced at Rs685-700 each, driving the total valuation to an impressive Rs70,000 crore.
It is also the third insurance company to list on the stock exchange. ICICI Prudential Life Insurance Company was the first to do so last year and was valued at Rs48,000 crore. Last week,…