PNB Metlife India Insurance Company has received the go-ahead from the Securities and Exchange Board of India (SEBI), the market regulator, to float an initial public offer (IPO).
Once listed PNB will become the fourth insurer in India to go public, joining ICICI Prudential Life Insurance, HDFC Life and SBI Life Insurance.
The insurer filed its draft red herring prospectus with SEBI last July and, after receiving the regulator’s observations on 2 November, it was given a green light for its IPO.
SEBI’s observations are needed for any company looking to launch public issues, such as an IPO, a follow-on public offer and rights issue.
Enhance brand
According to the draft paper, the offer will put up just under 496 million shares for sale – making up 24.46% stake dilution. PNB will offer up to just over 80 million shares in the IPO and Metlife International Holdings will offload more than 129 million stocks.
The move to go public would enhance liquidity to shareholders and establish further the insurer’s brand, the draft paper said.
PNB Metlife is a co-operative enterprise between PNB (30%), Metlife (26%), Elpro International (21%), M Pallonji & Co (18%) and J&K Bank (5%).
International Adviser contacted PNB Metlife but it was unable to comment.
