PNB MetLife Insurance is going ahead with its IPO plans, which were delayed on account of parent Punjab National Bank being hit by the Nirav Modi scam, and is likely to file its offer document in the first quarter. The company may be valued at over Rs 8,000 crore and promoters are looking to realise close to Rs 2,000 crore from the sale of shares.
According to sources, the company is looking at an offering before August 2018, making it the fourth listed life insurer in India. Last year, ICICI Prudential was the first in the sector to float its IPO. Earlier this year, SBI Life — an arm of the SBI — got listed. The latest and most successful IPO was that of HDFC Life Insurance.
HDFC Life was the first life insurer to hit an m-cap of Rs 1 lakh crore. ICICI Prudential, which was the first to get listed and also the first life company to achieve assets under management of Rs 1 lakh crore, is valued at Rs 53,000 crore. SBI Life, which has a share of 18.5% among private insurers in new business premium last year, has an m-cap of over Rs 71,000 crore.
Although PNB MetLife is well capitalised, with the promoters having invested over Rs 2,000 crore in the business, it does not figure among the top ten in terms of market share. PNB MetLife has a market share of 2.4% among private life insurers and an overall market share of little over 0.7% going by new business premium data for FY18 released by IRDAI. The company is the 10th largest among the 23 private life insurer with a new business premium of Rs 1,427 crore.