SBI Life Insurance falls 5% as OFS begins

NEW DELHI: Shares of SBI Life Insurance Company declined 5 per cent in morning trade on Tuesday as the two-day offer for sale (OFS) in the company began today.

BNP Paribas Cardif is planning to sell 2.5 crore shares of SBI Life Insurance through the offer for sale (OFS) route on Tuesday and Wednesday.

The sale price of the OFS shares has been fixed at Rs 650 apiece, a 8.5 per cent discount to Monday’s closing.

Through the OFS, BNP will raise about Rs 1,775 crore. The offer will open on June 25 for non-retail investors and on June 26 for retail investors.

BNP has reserved 10 per cent of the OFS shares for retail investors.

SBI Life is a joint venture between State Bank of India and French multinational bank BNP Paribas Cardif.

The stock traded 4.07 per cent down at Rs 681.50 on BSE around 10:05 am.