PNB MetLife India Insurance Company has received the green light from market regulator Securities and Exchange Board of India (SEBI) to float an initial public offer (IPO). When listed, the insurer will be the fourth life insurance company in India to go public.
The insurer, which had filed its draft red herring prospectus with SEBI in July, received the regulator's observations on 2 November, reports Press Trust of India. SEBI's observations are necessary for any company to launch public issues like an initial public offer, follow-on public offer and rights issue.
According to the draft papers, the offer is of 495,898,076 shares for sale, representing a 24.64% stake dilution. PNB will offer up to 80,495,242 shares in the IPO, while Metlife International Holdings will offload 129,036,281 stocks.
The public listing will enhance the PNB MetLife brand name and provide liquidity to the existing shareholders, the draft paper said.
PNB Metlife is a joint venture of PNB (30%), Metlife (26%), Elpro International (21%), M Pallonji & Co (18%) and J&K Bank (5%).
Listed life insurers in India currently are: ICICI Prudential Life Insurance, HDFC Life Insurance and SBI Life Insurance.