The board of India's largest public sector lender, State Bank of India, has approved the sale of 3.9 percent stake in its life insurance venture SBI Life Insurance to private equity firms KKR and Temasek.
The bank plans to divest 3.9 crore shares at a price of Rs 460 per share, it said in a media statement. SBI stands to earn Rs 1,794 crore through the stake sale which values the life insurance company at Rs 46,000 crore.
SBI Life is a joint venture between SBI and BNP Paribas Cardif. SBI owns 74 percent in the life insurer. Upon completion of the transaction, SBI will hold 70.1 percent stake in SBI Life while its joint venture partner, BNP Paribas Cardif, will continue to hold 26 percent.
The stake sale will be subject to regulatory approvals.
Kotak Mahindra Capital Company Ltd. and SBI Capital Markets Ltd. were the lead managers for the transaction.
On October 14, the largest PSU bank's executive panel had approved diluting up to 5 percent stake in SBI Life Insurance to a non promoter entity.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
