Carlyle buys 9% in SBI Life for Rs 4,635cr via block deal
SBI will continue to hold 62.1% stake in its life insurance subsidiary while the balance 16.1% is held by other investors and the general public.
Mumbai: Global investment firm The Carlyle Group on Friday acquired a 9% stake in private life insurer SBI Life Insurance for Rs 4,635 crore through a block deal on the BSE. After this transaction, BNP Paribas Cardif, banking major SBI’s foreign partner in the life insurer, will have a 12.8% stake. In addition to the 9 crore shares that were bought by CA Emerald Investments, a Carlyle arm, BNP Paribas also sold about 22.5 lakh shares for about Rs 116 crore in the open market, BSE data showed.
SBI will continue to hold 62.1% stake in its life insurance subsidiary while the balance 16.1% is held by other investors and the general public (see graphic). The investment in SBI Life is Carlyle’s largest investment in the financial services space in India, which include stakes in PNB Housing Finance and SBI Card.
According to SBI global banking & subsidiaries MD Dinesh Kumar Khara, Carlyle, with whom it has an existing relationship through SBI Card, is expected to bolster SBI Life’s franchise in the country. SBI Life MD & CEO Sanjeev Nautiyal said that Carlyle’s trust in the life insurer will further strengthen the company’s resolve to enhance its leadership position in India’s life insurance industry through a single-minded focus on quality customer experience.
For Carlyle, the investment in SBI Life was because of the life insurance industry’s strong growth potential in India. According to Sunil Kaul, managing director of Carlyle Asia Buyout advisory team, “SBI is the most trusted brand in financial services with an unparalleled nationwide branch network and a commitment to providing convenient access to quality financial services to every Indian. SBI Life, led by a strong management team, is helping deliver this promise in the life insurance space and is well-positioned to further benefit from industry trends. We are excited about the company’s growth prospects and proud to have this opportunity to support the journey.”
The entry of Carlyle in SBI Life led to a rally in the stock which on the BSE closed 5.5% higher at Rs 612, nearly a 19% jump over the block deal value.
SBI will continue to hold 62.1% stake in its life insurance subsidiary while the balance 16.1% is held by other investors and the general public (see graphic). The investment in SBI Life is Carlyle’s largest investment in the financial services space in India, which include stakes in PNB Housing Finance and SBI Card.
According to SBI global banking & subsidiaries MD Dinesh Kumar Khara, Carlyle, with whom it has an existing relationship through SBI Card, is expected to bolster SBI Life’s franchise in the country. SBI Life MD & CEO Sanjeev Nautiyal said that Carlyle’s trust in the life insurer will further strengthen the company’s resolve to enhance its leadership position in India’s life insurance industry through a single-minded focus on quality customer experience.
For Carlyle, the investment in SBI Life was because of the life insurance industry’s strong growth potential in India. According to Sunil Kaul, managing director of Carlyle Asia Buyout advisory team, “SBI is the most trusted brand in financial services with an unparalleled nationwide branch network and a commitment to providing convenient access to quality financial services to every Indian. SBI Life, led by a strong management team, is helping deliver this promise in the life insurance space and is well-positioned to further benefit from industry trends. We are excited about the company’s growth prospects and proud to have this opportunity to support the journey.”
The entry of Carlyle in SBI Life led to a rally in the stock which on the BSE closed 5.5% higher at Rs 612, nearly a 19% jump over the block deal value.
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