EdenSynergy

Guangzhou: Industry, Economics, and Policy

June 19, 2019 No comments

Sop-onomics beats economics

April 26, 2019 No comments

Jet Airways crisis: Lessors ask DGCA to deregister more planes leased to airlines

April 7, 2019 No comments

Three Questions For The Economic-Growth Scolds

March 31, 2019 No comments

SBI all set to sell 6.6% stake in life insurance arm

September 11, 2019

SBI-BCCL

Mumbai: The country’s largest lender State Bank of India is set to sell 6.6 per cent stake in SBINSE 1.74 % Life that would boost its capital position as well as help its insurance unit to comply with the minimum public float requirement of 25 per cent.

“SBI will sell 6.6 per cent stake in SBI Life to meet the minimum public shareholding norm,” said a senior executive of SBI Life. “The board of SBI will decide on the timeline of sale in the next board meeting.”

In March, private equity firm The Carlyle Group had acquired 9.25 per cent stake of the insurance company from co-promoter group BNP Paribas Cardiff for a deal worth about Rs 5,500 crore.

sbi-graph

This helped promoters reduce their stake to 75 per cent from 84 per cent, but as per market regulator Sebi’s laws for listed companies that mandate Minimum Public Shareholding (MPS) of 25 per cent within three years of listing, the dilution did not help meet the norm. SBI Life was offered for public listing between September 20 and 22, 2017.

Sebi regulation on the manner of achieving minimum public shareholding did not consider the sale by BNP Paribas as promoter stake sale. Its rules for minimum public shareholding state that such a deal can be done either through a public issuance on prospectus, or Offer for Sale through stock exchanges, or alternatively placing the offering for institutional QIP.

BNP Paribas’ promoter share had reduced to 13 per cent from 22 per cent while majority promoter State Bank of India’s share remained at 62 per cent.

SBI Life has an AUM (asset under management) of Rs 1.5 lakh crore. The gross written premium during April-June of 2019-20 grew 41 per cent to Rs 6,690 crore as against Rs 4,760 crore a year ago. It had posted a 5 per cent increase in its net profit to Rs 371.90 crore in the first quarter ended June 30. The company is looking to diversify its product mix with segments such as immediate annuity plus and group immediate annuity.

The share price of SBI Life increased 0.48 per cent to Rs 835 on the Bombay Stock Exchange on Friday.

[“source=economictimes”]


Categories: Life insurance