“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,” SBI Life Insurance 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 BSE Sensex. SBI Life Insurance 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 BSE Sensex. The trading volumes on the counter more than doubled, with a combined 280,481 equity shares changing hands on the NSE and BSE so far.