SBI Life Insurance tumbles as OFS begins

SBI Life Insurance Company was down 4.19% to Rs 680.70 at 11:53 IST on the BSE after the company said one of its promoters, BNP Paribas Cardif, will sell up to 2.5% stake in the life insurance firm through offer for sale.

The announcement was made after market hours yesterday, 24 June 2019.

Meanwhile, the S&P BSE Sensex was up by 11.88 points, or 0.03% to 39,134.84.

On the BSE, 49,000 shares were traded in the counter so far compared with average daily volumes of 24,000 shares in the past two weeks. The stock had hit a high of Rs 684.80 and a low of Rs 675 so far during the day. It hit a 52-week high of Rs 713.80 on 24 June 2019 and a 52-week low of Rs 487 on 1 October 2018.

BNP Paribas Cardif will sell stake through offer for sale (OFS) today, 25 June 2019 and the floor price for the sale will be Rs 650 per share.

BNP Paribas Cardif proposes to sell up to 2.50 crore equity shares, or 2.5% stake, in SBI Life Insurance Company today, 25 June 2019 (T Day) (for non-retail investors only) and on 26 March 2019 (T+1 Day) (for retail investors and for non-retail investors who choose to carry forward their bids).

Currently, BNP Paribas Cardif holds 7.70% stake in the life insurance company while State Bank of India has a 62.10% stake.

On the first day of the bidding for OFS today, 25 June 2019, at 12:05 IST, bids were received for 21.67 lakh shares from the non-retail investors, representing a subscription of 9.63%.

SBI Life Insurance Company's net profit rose 20.1% to Rs 457.68 crore on a 54.8% rise in the total income to Rs 15739.85 crore in Q4 March 2019 over Q4 March 2018.

SBI Life Insurance Company is one of the leading life insurance companies in India. The company is a joint venture between India's largest bank State Bank of India and the leading global insurance company BNP Paribas Cardif.

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