MUMBAI: The State Bank of India (SBI) has announced on Wednesday it will sell stake in its life insurance arm in its drive towards meeting the minimum public shareholding norm of 25 per cent.
A stock market filing said SBI’s board had approved an offer-for-sale of at least 3.5 per cent stake (3.5 crore shares) in SBI Life Insurance Company Ltd., with an option of oversubscription of another one per cent.
The floor price for the sale has been set at Rs799.65 even as SBI Life share closed at Rs799.40 on NSE having lost 0.92 per cent and at Rs800.05 on BSE on Wednesday.
The filing said the sale for institutional investors will take place on September 12 and retail investors on September 13. On completion of the offer for sale (OFS), SBI’s stake in SBI Life will drop from 62.1 per cent to 57.6 per cent.
There were reports that in March, private equity firm The Carlyle Group had acquired 9.25 per cent stake of the insurance company from co-promoter group BNP Paribas Cardiff for a deal worth about Rs5,500 crore.