The State Bank of India (SBI) has recently stated that it will increase up to Rs 3,465 crore by selling up to 4.5 percent stake in its insurance arm SBI Life Insurance Company. However, this is subject to requisite approvals.
“The Executive Committee of Central Board (ECCB) of State Bank of India (SBI) in its meeting held today i.e., September 11,2019 has accorded approval for divestment of 3,50,00,000 + 1,00,00,000 equity shares constituting 3.5% with an oversubscription up to 1% of its stake in SBI Life,” the lender said in a filing to the Bombay Stock Exchange.
The stake sell will consist of a base issue of selling 3.5 crore equity shares (representing 3.5 per cent of the total issued and paid-up equity share capital of SBI Life) with an option to additionally sell up to 1 crore (or 1 per cent) paid up equity share of SBI Life.
The bank is offloading stake to achieve the minimum public shareholding of 25 per cent (part of bank’s share of MPS) through offer, as per the regulatory prescription, SBI said.
“The seller (SBI) proposes to sell up to 3.5 crore equity shares, in aggregate representing 3.5 per cent of the total issued and paid-up equity share capital of the company (SBI Life Insurance) on September 12, 2019 for non-retail investors and on September 13, 2019 for retail investors and for non-retail investors who choose to carry forward their un-allotted bids,” SBI said in a regulatory filing.
