PNB MetLife India Insurance Company has received market regulator Sebi's go-ahead to float an initial public offer (IPO). The insurer, which had approached the regulator in July seeking its clearance to launch IPO, obtained Sebi's "observations" on November 2, as per the latest update with the market watchdog. Sebi's observations are necessary for any company to launch public issues like initial public offer, follow-on public offer and rights issue.
According to the draft papers, the company IPO will put up 49,58,98,076 shares for sale, worth 24.64 per cent stake dilution. PNB will offer up to 8,04,95,242 shares in the IPO, while Metlife International Holdings LLC will offload 12,90,36,281 stocks. The listing of shares will enhance the PNB MetLife brand name and provide liquidity to the existing shareholders, the draft paper said. The shares are proposed to be listed on stock exchanges.
The issue is being managed by Kotak Mahindra Capital Company, DSP Merrill Lynch, Citigroup Global Markets India and PNB Investment Services. PNB MetLife joins a growing list of insurance companies that have gone public. These include SBI Life Insurance Company, New India Assurance Company, General Insurance Corporation of India, HDFC Standard Life Insurance and ICICI Lombard General Insurance Company.