Canada Pension Plan to sell 2% in SBI Life, eyes Rs 2,440 cr at top end

In case the demand is strong, it has the option to sell its entire holding

The Canada Pension Plan Investment Board (CPPIB) plans to offload 2 per cent stake in SBI Life Insurance Company on Thursday, according to terms of the deal obtained by Bloomberg. The shares will be offered in the range between Rs 1,159 and Rs 1,220 per share.

At the top end, the share sale will fetch Rs 2,440 crore.

SBI Life’s shares last closed at Rs 1,220, down 1.64 per cent over its previous day’s close.

In case the demand is strong, CPPIB has the option to sell its entire holding.

Currently, the Canadian investment manager holds 28.58 million, or 2.86 per cent stake in the life insurance firm.

BNP Paribas is the investment bank handling the share sale.

CPPIB had bought 2.24 million shares of SBI Life during its IPO four years ago. Shares of SBI Life were priced at Rs 700 in the IPO. Later in March 2019, the investment firm had acquired 20 million more shares at Rs 578 from BNP Paribas Cardif, a co-promoter in SBI Life.

At present, State Bank of India (SBI) holds 55.5 per cent stake in SBI Life, while BNP Paribas owns just 0.2 per cent.

Government of Singapore (owns 2.69 per cent stake), Carlyle (1.9 per cent) and ICICI Prudential Life Insurance (1.36 per cent) are among the major public shareholders in SBI Life.

Shares of SBI Life have outperformed the Sensex with a gain of 36 per cent on a year to date basis. Sensex is up 22 per cent this year.