SBI Life IPO subscribed 9% on Day 1

New Delhi: The initial share sale offer of SBI Life Insurance Company was subscribed 9 percent on the first day of the three-day bidding on Wednesday, stock exchanges data showed.

The Rs 8,400 crore initial public offer (IPO) received bids for 83,67,555 shares against the total issue size of 8,82,00,000 shares, data available with the NSE showed.

The category reserved for qualified institutional buyers (QIBs) was subscribed 6 per cent, non institutional investors 1 per cent and retail investors 16 per cent.

The IPO received over 1.6 lakh applications on the first day, investment banking sources said.

SBI Life Insurance Company has raised Rs 2,226 crore from anchor investors.

SBI Life is a joint venture between India's largest lender State Bank of India (SBI) and BNP Paribas Cardif (BNPPC) -- the insurance holding company of France.

The company's IPO involves promoters offloading up to 12 crore shares of face value of Rs 10 each through the offer of sale route. SBI will dilute up to 8 crore shares while BNP Paribas Cardif SA will offload up to 4 crore shares.

The insurer is looking to raise about Rs 8,400 crore at the higher end of the price band which is fixed at Rs 685-700 per share.

The initial share sale offer will close on September 22.

JM Financial Institutional Securities, Axis Capital, BNP Paribas, Citigroup Global Markets India, Deutsche Equities India, ICICI Securities, Kotak Mahindra Capital Company, SBI Capital Markets are the book running lead managers to the offer.