SBI Life Insurance shares slip 2% as SBI's two-day OFS begins

SBI Life Insurance Company dipped 2 per cent to Rs 786 in Thursday's early morning trade on the BSE as the two-day offer for sale (OFS) in the company by the State Bank of India (SBI) opened today.

The SBI plans to sell up to 3.5 crore equity shares (3.5 per cent of the total paid-up equity) in its insurance arm on September 12-13, as per SBI Life Insurance Company's exchange filing. READ THE FILING HERE

In a separate filing yesterday, SBI said its board had approved an offer-for-sale of at least 3.5 per cent stake in SBI Life Insurance Company Ltd., with an option of oversubscription of 1 per cent.

The floor price for the sale has been set at Rs 770 per share as compared to Wednesday's closing price of Rs 799.65 apiece. Today, on the first day, the sale is for institutional investors and retail investors can take part in the OFS tomorrow (September 13).

SBI plans to raise up to Rs 3,465 crore by offloading up to 4.5 per cent stake in SBI Life to comply with the minimum public shareholding norms.

At 10:33 AM, the stock was trading with a 0.8 per cent cut at Rs 792.55 as compared to 0.2 per cent gain in the benchmark S&P BSE Sensex. A combined 658,000 shares had changed hands on the NSE and BSE so far. Meanwhile, the SBI was trading 0.53 per cent higher at Rs 286.80.