Lawstreet Journal

SBI to Sell 2.1 percent Stake in SBI Life through OFS to Conform to Shareholding Norms

Lawstreet Journal 18 Jun 2020 10:34pm

Image courtesy: Lawstreet Journal Business SBI to Sell 2.1 percent Stake in SBI Life through OFS to Conform to Shareholding Norms

On Tuesday, 16 June 2020, the State Bank of India stated that it has sold 2.1 percent of its stake in its subsidiary SBI Life Insurance Company through the Offer for Sale (known as OFS) route to comply with Shareholding norms laid down by the Reserve Bank of India. 

The OFS took place in tranches on 12 June 2020 and 15 June 2020, the bank said in a regulatory filing without specifying the sum earned by the selling of shares. Based on the floor price of Rs 725 a share for the OFS, SBI received an additional Rs 1,522.50 crore by selling 2.1 crore shares of its life insurance subsidiary. 

The bank said in its regulatory filing, “We, State Bank of India (seller) as one of the promoters of SBI Life Insurance Company Ltd (target company) have sold 2,10,00,000 equity shares of the face value of Rs 10 each of the target company, representing 2.10 percent of the total issued and paid-up equity share capital of the target company, through the stock exchange mechanism.” Previously on 11 June 2020, SBI Life announced that the promoter SBI had fixed the floor price for the OFS. The selling was conducted by the seller with a view to achieving the minimum public shareholding in the target firm as specified by the rules of SEBI, said SBI. As a result, SBI's shareholding in SBI Life has fallen to 55.50 percent from its previous holding of 57.60 percent. 

In September 2019, SEBI, the market regulator, expelled SBI Life… Continue Reading...

Tagged: State Bank of India  
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