State Bank of India (SBI) on Friday, 24 March 2017, said that the Company plans to dilute 10% of its stake in insurance venture SBI Life through Initial Public Offering (IPO). The executive committee of central board accorded in-principle approval for initial IPO` of shares, SBI said.
SBI Life Insurance is a venture of the bank and BNP Paribas Cardif. SBI owns 74% of the total capital and BNP the rest. BNP ruled out increasing its stake in SBI Life to 49% ahead of the proposed IPO slated for next year.
The insurer has an authorised capital of Rs 2,000 crore as well as a paid-up capital of Rs 1,000 crore. Last year, SBI had sold 3.9% stake in SBI Life to global private equity major KKR and the Singaporean sovereign fund Temasek Holdings for Rs 1794 crore valuing the country’s third-largest private life insurer at Rs 46,000 crore.
After this stake sale, SBI’s stake in the arm came down to 70.1% from 74% while BNP Paribas Cardif still holds 26%.