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BNP Paribas Cardiff may trim stake in SBI Life; stock hits new low

The stock slipped 6% to Rs 553 on the BSE in intra-day trade after the company said that BNP Paribas Cardiff may trim stake in the company to comply with minimum shareholding norms.

SI Reporter  |  Mumbai 

BNP Paribas Cardiff may trim stake in SBI Life; stock hits new low

Shares of has slipped 6% to Rs 553 per share on the in intra-day trade after the company said that may trim stake in the insurer to comply with minimum shareholding norms. The stock was trading at its lowest level since listing on October 3, 2017.

“The company has been informed by BNP Paribas Cardif SA that BNP Paribas Cardif may consider reducing its shareholding in the Company to ensure compliance with minimum public shareholding requirements in accordance with applicable law,” said in a regulatory filing.

In this context, BNP Paribas Cardif has also confirmed that it is yet to make any firm decisions regarding the size, timing or nature of such potential reduction in their shareholding of the Company, it added.

In past five months, the stock has underperformed the market by falling 28% against 7% rise in the S&P Sensex. had raised Rs 84 billion by issuing shares at price of Rs 700 per share.

SBI Life Insurance was 74:26 joint venture between India's largest lender State Bank of India (SBI) and BNP Paribas Cardif -- the insurance holding company of France. As of June 30, 2018, BNP Paribas Cardif holds 22% stake, while SBI holds 62.1% stake in SBI Life Insurance.

At 12:18 pm; SBI Life Insurance was trading 3% lower at Rs 572 as compared to 0.31% rise in the S&P Sensex. The trading volumes on the counter more than doubled, with a combined 280,481 equity shares changing hands on the and BSE so far.


First Published: Tue, September 25 2018. 12:21 IST
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