SBI holds 57.60% stake in the company as on 31 March. SBI Life offer for sale open on June 12 for non-retail Investors and June 15 for retail Investors
The country’s largest lender State Bank of India (SBI) on Thursday said that it will sell 2.1 crore shares or 2.10% stake in SBI Life Insurance Co Ltd through an offer for sale.
The public sector lender holds 57.60% stake in the company as on 31 March. SBI Life offer for sale open on June 12 for non-retail Investors and June 15 for retail Investors.
The floor price for the Sale is Rs.725 per equity share. At the floor price, SBI will raise Rs1,522.5 crore or $202 million from the share sale.
The floor price is a 2.2% discount to SBI Life's closing price of Rs741.45 on BSE on Thursday.
Investment bank Nomura is advising SBI on the share sale.
From the beginning of the year, Shares of SBI and SBI Life have fallen 47% and 23% respectively against a fall of 19% in the benchmark index, Sensex. From the March lows, SBI and SBI Life gained 18% and 43%, while Sensex gained 31%.
Today, in a separate filing, State Bank of India (SBI)'s board approved long-term fund raising of upto $1.5 billion through public offer or private placement of senior unsecured notes during FY 2020-21.
The executive committee of SBI's central board will now examine the status and decide on long term fund raising in single/multiple tranches up to $1.5 billion through public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY2020-21.
On a standalone basis, SBI's net profit surged more than four times to ₹3,580.81 crore for the quarter ended 31 March against ₹838.40 crore for the same quarter last year. Total Income rose 4.1% to ₹78,758.85 crore in Q4 March 2020 over ₹75670.50 crore in Q4 March 2020.
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