SBI Life Insurance gains as OFS begins, SBI to sell 2.1% stake

SBI Life Insurance Company rose 1.46% to Rs 752.25 as its offer for sale (OFS) opened for subscription for non-retail investors.

Promoter State Bank of India (SBI) offered to sell a total of 2.10 crore shares, or 2.1% stake, through an OFS. The floor price for the OFS was set at Rs 725 each, a 2.22% discount to the closing price of Rs 741.45 on Thursday.

The OFS opened on Friday (12 June) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Monday (15 June). The company has set aside 21 lakh shares of retail investors and 1.89 crore shares for non-retail investors.

As on 12:15 IST, the OFS received subscription for 15,53,784 shares or 8.22% against the non-retail offer size of 1.89 crore shares.

SBI is reducing stake in the insurance unit to achieve minimum public shareholding of 25%. As of 31 March 2020, SBI held 57.60% stake in SBI Life.

SBI Life's standalone net profit jumped 15.9% to Rs 530.67 crore on a 64% slump in total income to Rs 5,665.51 crore in Q4 March 2020 over Q4 March 2019.

SBI Life Insurance Company is one of the leading life Insurance companies in India. The company has strong distribution network of 1,86,495 trained insurance professional and widespread operations with 937 offices across country.

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