Established in February 2009, Star Union Dai-ichi Life’s (SUD Life) premium income stood at Rs 1,211 crore, while its profit after tax stood at Rs 55 crore during April-December 2018-19.
Bank of India on Friday announced it proposal to sell its 25.05% stake in Star Union Dai-ichi Life Insurance, its joint venture company with Union Bank of India and Japan’s Dai-ichi Life Holdings. In its request for proposal (RFP), the public sector lender said it is proposing to sell 6.48 crore equity shares worth about `1,106 crore.
Bank of India has invited non-binding bids to its partial stake sale with a floor price of Rs 170.50 per share. Bank of India has a 28.96% stake in the joint venture, while Union Bank of India and Dai-ichi Life own 25.10% and 45.94%, respectively.
Established in February 2009, Star Union Dai-ichi Life’s (SUD Life) premium income stood at Rs 1,211 crore, while its profit after tax stood at Rs 55 crore during April-December 2018-19. The insurer provides individual and group plans that meet various needs which includes protection plans, savings plan, wealth plans, child plans and health plans among others.
In its RFP bank stated, “BOI is proposing to sell up to 6,48,739,64 equity shares having face value of Rs 10 each of Star Union Dai-ichi Life Insurance comprising 25.05% of the total paid-up equity share capital of SUD Life with a floor price of Rs 170.50 per share.”
Bank of India has invited non-binding proposals/bids for purchase of the said equity shares by April 12. The proposed stake sale is part of the bank’s efforts to offload some of its non-core assets and raise funds. Shares of Bank of India on BSE ended the day at Rs 100.90 down by 0.10% on Friday. The data from Insurance Regulatory and Development Authority of India shows that market shares of Star Union Dai-ichi Life Insurance is under 1% for the period between April and February.