SBI Life Insurance's offer for sale oversubscribed more than 2 times

At Rs 741 per share, promoter State Bank of India will be able to raise Rs 1,556 crore

SBI Life Insurance Company’s Rs 1,500-crore offer for sale (OFS) garnered more than two times subscription. Total bids exceeded 38.6 million for the 18.9 million shares put on the block for institutional investors. Another 2.1 million shares meant for retail investors will be auctioned on Monday. 

The floor price for the share sale was fixed at Rs 725 per share. However, most bids came at Rs 741 per share, data provided by the BSE showed. Meanwhile, shares of SBI Life ended at Rs 751, up 1.3 per cent over its previous close.

At Rs 741 per share, promoter State Bank of India (SBI) will be able to raise Rs 1,556 crore. The country’s largest lender is paring 2.1 per cent in the life insurer in the OFS. 

SBI Life is a joint venture between SBI and BNP Paribas Cardiff. At the end of March 2020, SBI held 57.6 per cent stake in the life insurer and BNP Paribas Cardiff 5.2 per cent. SBI Life is currently valued at Rs 75,100 crore.