State Bank of India has decided to sell 3.9 per cent stake in its subsidiary SBI Life Insurance Company Ltd (SBI Life) for ₹1,794 crore ($264 million).
The Executive Committee of the Board of SBI approved the sale of 3.9 crore shares of ₹10 each. The proposed transaction values SBI Life at ₹46,000 crore (at ₹460 per share).
Upon completion of the transaction, SBI will hold 70.1 per cent stake in SBI Life, while its joint venture partner, BNP Paribas Cardif, will continue to hold 26 per cent.
This is the second major divestment in the insurance segment after the Centre raised the maximum permissible shareholding of foreign investors in insurance companies from 26 per cent to 49 per cent.
Last year, following the increase in the foreign investment cap, ICICI Bank sold 6 per cent stake in ICICI Prudential Life Insurance Company at a company valuation of ₹32,500 crore.
SBI Chairman is Arundhati Bhattacharya.
