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BNP Paribas Cardif trims stake in SBI Life

The sale price was fixed at Rs 650/stock which is at 8.5 per cent discount to Monday’s closing rate.

BNP Paribas Cardif trims stake in SBI Life

(File Photo: IANS)

France’s BNP Paribas Cardif, that once partnered State Bank of India to launch SBI Life Insurance a couple of years ago, continues to trim its stake in the joint venture. After offloading 5 crore stocks of SBI Life Insurance in March through block deals at Rs 578/stock, it today announced further sale of about 2.5 crore stocks of SBI Life Insurance spread over two days using the route of offer for sale or OFS.

The sale price was fixed at Rs 650/stock which is at 8.5 per cent discount to Monday’s closing rate. There has been no explanation of reason attached to gradual sale in the insurance arm of India’s biggest lender.

Through current OFS, BNP Paribas Cardif expects to raise Rs 1,775 crore. Earlier in March, it had accrued Rs 2,889 crore by selling 5 crore shares. SBI Life Insurance was listed on the exchanges after its first public offering (IPO) at an issue price of Rs 700/stock.

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At the time of listing, the French partner was holding 22 per cent stake which has now declined to a little over 7 per cent.

SBI owns 62.10 per cent stake in its insurance arm. Just before the announcement of OFS, the stock price of SBI Life Insurance had hit 52-week high of Rs 714 on Monday.

Today it fell more than 5 per cent in morning trade to Rs 675. Today’s sale was for non-retail investors while tomorrow’s will be for retail buyers. BNP Paribas Cardif is a subsidiary of the French bank BNP Pari bas.

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