February 28, 2021

SBI sheds 2.1% stake in SBI Life through OFS to adjust to shareholding norms

New Delhi: State Financial institution of India on Tuesday mentioned it has bought 2.1 per cent stake of its stake its subsidiary SBI Life Insurance coverage Firm by means of the provide on the market path to adjust to shareholding norms.

The OFS happened in tranches on June 12 and June 15, 2020, the financial institution mentioned in a regulatory submitting with out disclosing the quantity raised by means of the share sale.

Based mostly on the ground worth of Rs 725 per share for the OFS, SBI has raised an estimated Rs 1,522.50 crore by promoting 2.1 crore shares of its life insurance coverage subsidiary.

“We, State Financial institution of India (vendor) as one of many promoters of SBI Life Insurance coverage Firm Ltd (goal firm) have bought 2,10,00,000 fairness shares of face worth of Rs 10 every of the goal firm, representing 2.10 per cent of the overall issued and paid up fairness share capital of the goal firm, by means of the inventory change mechanism,” SBI mentioned within the regulatory submitting.

Earlier on June 11, SBI Life had knowledgeable that the promoter SBI had set the ground worth for the OFS.

The sale has been undertaken by the vendor for reaching the minimal public shareholding of the goal firm as prescribed beneath guidelines of Sebi, SBI mentioned.

With this, the shareholding of SBI in SBI Life has gone right down to 55.50 per cent from earlier holding of 57.60 per cent.

In September 2019, market regulator SEBI had pulled up SBI Life Insurance coverage for not complying with minimal public shareholding (MPS) norms and directed the insurer to be cautious sooner or later.

SBI Life had began as a 74:26 three way partnership between nation’s largest lender SBI and BNP Paribas Cardif of France.

SBI shares closed 0.69 per cent decrease at Rs 172.85 apiece on BSE, whereas SBI Life scrip ended 2.56 per cent up at Rs 764.30 apiece.