SBI General's IPO To Be On Backburner As AMC Prepares Mega Listing | Profit Exclusive
In August, CS Setty had said that SBI General Insurance and SBI Mutual Fund were under consideration for public listing.
Despite SBI Chairman CS Setty's statement that SBI General Insurance and SBI Mutual Fund were under consideration for public listings, SBI General's market debut is said to be on the backburner, two people aware of the matter told NDTV Profit.
SBI General Insurance Co. is currently focusing on internal growth, and the company's promoters are not currently discussing a potential listing, one of the above-mentioned people said.
While SBI General Insurance has completed an IPO roadmap in compliance with the Insurance Regulatory and Development Authority of India's guidelines, the plan is not being acted upon at this time, the second person explained on the condition of anonymity.
State Bank of India is aiming to list its asset management subsidiary, SBI Mutual Fund, before proceeding with the general insurance IPO, both the people added. The parent company is concerned that launching public offers for two large subsidiaries in close succession would lead to excess group liquidity hitting the market at the same time, potentially affecting the success of both issues, the second person said.
The pause allows SBI General Insurance to concentrate on scaling its business operations, a focus that precedes the formal launch of a listing process, the people mentioned above explained.
NDTV Profit has reached out to both SBI and SBI General Insurance for comments on the story. The company's shares are a crowd favourite in the unlisted market and have been trading around the Rs 1,150-mark, indicating a rough valuation of around Rs 26,000 crore.
Earlier this year, SBI, the parent entity, raised Rs 25,000 crore through the country's largest qualified institutional placement, and is now targeting a listing of its mutual funds business at a valuation of over Rs 1 lakh crore.
In August, SBI Chairman CS Setty had said that SBI General Insurance and SBI Mutual Fund were under consideration for public listing, though no specific timeline or valuations were announced at that time.
68% of SBI General Insurance is owned by the State Bank of India. Azim Premji-backed Napean Opportunities and Premji Invest hold around 18% stake while Warburg Pincus owns 9.7%, according to data from market intelligence firm Tracxn.
SBI General Insurance financial metrics
In fiscal 2025, the company reported a profit after tax of Rs 509 crore, registering a 112% year-on-year growth. "The company outpaced industry benchmarks and grew at twice the pace of private multi-line insurers," CS Setty said in the firm's annual report.
In the same period, SBI General reported a gross written premium of Rs 14,140 crore, translating to a year-on-year growth of 11%. Since its establishment in 2009, SBI General Insurance has grown from 17 branches in 2011 to a nationwide presence of over 145 branches.
