The country’s largest lender, State Bank of India (SBI), on Wednesday approved to divest at least 3.5% stake in SBI Life Insurance through the offer for sale (OFS) route.
The country’s largest lender, State Bank of India (SBI), on Wednesday approved to divest at least 3.5% stake in SBI Life Insurance through the offer for sale (OFS) route. SBI Life in the notice to exchange said that SBI proposes to sell 3.5 crore shares in aggregate representing 3.50% of the total issued and paid-up equity share capital of the company. The floor price for the offer shall be Rs 770 per equity share and offers open on September 12. With this, the bank will raise around Rs 2,695 crore.
On Wednesday stock of SBI Life closed at Rs 798.75 down by 1.13% or Rs 9.15 on BSE. SBI in its filing on exchanges said, Executive Committee of Central Board (ECCB) in its meeting held today has accorded undernoted approval. “Divestment of 3,50,00,000+1,00,00,000 equity shares constituting 3.5% with an oversubscription upto 1% of our stake in SBI Life to achieve minimum public shareholding of 25% (part of bank’s share for MPS) through Offer for Sale process through stock exchange mechanism as per the regulatory prescription.”
The offer will open on September 12, 2019 for non-retail investors only and on September 13, 2019 for retail investors and for non-retail investors who choose to carry forward their un-allotted bids. SBI Life Insurance Company (“SBI Life”/ “the Company”), established in 2001, is a joint venture between State Bank of India and BNP Paribas Cardif and is one of the leading life insurance companies in India. SBI Life offers a comprehensive range of life insurance and pension products at competitive prices, ensuring high standards of customer service and world class operating efficiency. The company offers individual and group products which include savings and protection plans to address the insurance needs of diverse customer segments.