To comply with 25pc public shareholding in SBI Life
MUMBAI: The State Bank of India (SBI), country’s largest bank on Thursday (June 11) informed that it would sell 2.1 crore shares constituting 2.1 per cent holding in its life insurance arm – SBI Life Insurance Company through the offer for sale (OFS) route.
The move is aimed to comply with the 25 per cent minimum shareholding by public in SBI Life, where SBI, the largest shareholder, owns 57.60 per cent as of March 31, 2020.
The OFS will open on June 12 for non-retail investors and on June 15 for retail investors, according to a filing made by SBI to the stock markets.
The floor price for the sale has been kept at Rs725 per equity share. At the floor price, SBI will raise Rs1,522.5 crore (about $202 million) from the share sale.
The floor price is at 2.2 per cent discount to SBI Life’s closing price of Rs741.45 on Thursday on BSE. Investment bank Nomura is advising SBI on the share sale.
Year to date, shares of SBI and SBI Life have fallen 47 per cent and 23 per cent respectively against a 19 per cent drop in the benchmark index during the same period.