PNB MetLife could be valued at over Rs. 8,000 crores and would be the 4th life insurance company to list on stock exchanges as the company looks to raise funds.
ICICI Prudential was the first insurer to be publicly listed in September 2016. SBI Life and HDFC Life are in the process of listing by December 2017.
“The Board looks at all opportunities to add value to the business and an initial public offering is clearly one option,” said a PNB MetLife spokesperson in response to the query. “We can confirm that the board has agreed to explore an IPO but it is too early to make any further statements at this time.” There was no response on the likely embedded value of the company by the spokesperson.
The company has assets under management of Rs 16,000 crores. It had reported profit after tax of Rs 103 crores in the last financial year up from Rs 63 crores in the previous year.
Punjab National Bank BSE 2.35 % had bought the stake in MetLife in 2013 with a 5-year lock-in period. The insurer is present in 7,000 locations, including through branches of Punjab National Bank. It is the second largest life insurance firm promoted by a state-run bank, after State Bank of India-led SBI Life.