Carlyle affiliate to offload entire 1.9% stake in SBI Life Insurance

US private equity fund CA Emerald Investments, an affiliate of Carlyle Asia Partners, will offload its entire 1.9 per cent stake in SBI Life Insurance Company. The share sale will be launched on Thursday.
 
The price range for the share sale has been set at Rs 1,130-Rs  1,136.85, according to a term sheet. The upper end is SBI Life’s closing price on the BSE on Wednesday. At the lower end, Carlyle will be able to raise Rs 2,147 crore. BofA Securities India is the investment bank handling the share sale.
 
 In 2019, Carlyle had bought a 9 per cent stake in SBI Life from BNP Paribas for about Rs 5,500 crore.
 
Later in November 2019, Carlyle offloaded 3 per cent stake at Rs 938 per share to raise Rs 2,814 crore. Then in May this year, Carlyle had sold 4.2 per cent stake in SBI Life at Rs 960 per share to raise Rs 4,061 crore.
 
Currently,  State Bank of India (SBI), the promoter, holds 55.5 per cent stake in SBI Life and BNP Paribas Cardiff holds 0.2 per cent stake.

SBI Life Insurance has reported a 43 per cent drop in net profit in the Q1 of FY22 due to higher reserves set aside for future Covid claims. In Q1 of FY22, the insurer posted a net profit of Rs 223 crore against Rs 390.89 crore in Q1 of FY21. Value of new business (VNB) of the insurer grew by 45 per cent to Rs 340 crore in the April-June quarter against Rs 240 crore in the year-ago period.