SBI to raise Rs 3,465 crore by selling up to 4.5% in SBI Life

The share sale process consists of a base issue of selling up to 3.5 per cent with an option to additionally sell up to 1 per cent of the total issued and paid-up equity share of SBI Life.

SBI Life

Published : Sep 12, 2019, 3:38 PM IST

New Delhi: SBI on Wednesday said it will raise up to Rs 3,465 crore by offloading up to 4.5 per cent stake in SBI Life Insurance Co to bring down the promoter shareholding as per regulatory norms.

The share sale process consists of a base issue of selling up to 3.5 per cent with an option to additionally sell up to 1 per cent of the total issued and paid-up equity share of SBI Life.

The floor price for the share sale has been fixed at Rs 770 per equity share.

"The seller (SBI) proposes to sell up to 3.5 crore equity shares, in aggregate representing 3.5 per cent of the total issued and paid-up equity share capital of the company (SBI Life Insurance) on September 12, 2019 for non-retail investors and on September 13, 2019 for retail investors and for non-retail investors who choose to carry forward their un-allotted bids," SBI said in a regulatory filing.

The share sale comes with an option to additionally sell up to 1 crore shares (representing 1 per cent of the total issued and paid-up equity share capital of SBI Life) in case the oversubscription option is exercised.

The share sale offer is being undertaken to achieve the minimum public shareholding of 25 per cent (part of bank's share of MPS) through offer, as per the regulatory prescription, SBI said.

Promoter and promoter group have a total shareholding of 67.30 per cent in the life insurer, in which SBI holds 62.10 per cent and BNP Paribas Cardiff has 5.20 per cent.

Stock of SBI closed at Rs 285.30 apiece on BSE, up 2.66 per cent from the previous close. SBI Life settled down 0.97 per cent at Rs 800.05 per share.

The share sale process consists of a base issue of selling up to 3.5 per cent with an option to additionally sell up to 1 per cent of the total issued and paid-up equity share of SBI Life.

The floor price for the share sale has been fixed at Rs 770 per equity share.

The share sale offer is being undertaken to achieve the minimum public shareholding of 25 per cent (part of bank's share of MPS) through offer, as per the regulatory prescription, SBI said.

Promoter and promoter group have a total shareholding of 67.30 per cent in the life insurer, in which SBI holds 62.10 per cent and BNP Paribas Cardiff has 5.20 per cent.

Stock of SBI closed at Rs 285.30 apiece on BSE, up 2.66 per cent from the previous close. SBI Life settled down 0.97 per cent at Rs 800.05 per share.

ZCZC
URG COM ECO ESPL
.MUMBAI BCM16
BIZ-PNB WORKING GROUP
PNB, UBI & OBC forms working groups to oversee merger process
Mumbai, Sep 11 (PTI) State-run Punjab National Bank,
the anchor bank for the merger of United Bank of India and
Oriental Bank of Commerce with it, on Wednesday, said the
three lenders together have formed 23 working groups for
overseeing the amalgamation process.
Last week, the board of PNB has given in-principle
approval for amalgamation of Oriental Bank of Commerce (OBC)
and the United Bank of India (UBI) with it.
"The amalgamation has to be in terms of technology,
products and services, and common services. We all are working
on this and have created 23 working groups in all the three
banks," PNB's managing director and CEO, Sunil Mehta, told
reporters here.
These groups, which will be working on various banking
aspects such as product, processes and human resources, will
have participants from the three banks, Mehta said on the
sidelines of the 72nd annual general meeting of Indian Banks'
Association..
He said as of now there are 23 working groups but may
increase the number, if needed.
He sees a lot of synergies within the three banks.
"OBC has a good system and processes. They have got
overlapping presence with PNB, which can be of advantage and
we can optimise on our resources. We do not have a presence in
the eastern and north-eastern part of the country, where
United Bank has good presence," Mehta said.
He also said the amalgamation will not lead to any
retrenchment of employees and there is no plan to come out
with a voluntary retirement scheme (VRS).
Oriental Bank of Commerce and United Bank will merge
into Punjab National Bank to create a bank with Rs 17.95 lakh
crore business and 11,437 branches.
Last month, the government had unveiled a mega plan to
merge 10 public sector banks into four as part of plans to
create fewer and stronger global-sized lenders as it looks to
boost economic growth from an over six-year low.
Other sets of mergers are -- Canara Bank and Syndicate
Bank will merge; Union Bank of India will amalgamate with
Andhra Bank and Corporation Bank; and Indian Bank will merge
with Allahabad Bank. PTI HV
AP
AP
09112049
NNNN

For All Latest Updates

TAGGED:

SBI selling up to 4.5% in SBI Life

SBI

SBI Life

business news

SBI to raise Rs 3,465 crore by selling up to 4.5% in SBI Life

The share sale process consists of a base issue of selling up to 3.5 per cent with an option to additionally sell up to 1 per cent of the total issued and paid-up equity share of SBI Life.

Quick Links / Policies

Get Us On

Featured

Union Budget 2025: Economists Suggest Tax Reforms, Focus on MSMEs, And Boosts For Education And Technology

Ahead Of Union Budget, Agriculture Experts Expect Enhancement Of Agri-Fund For Research, New-aged Technology

Share Of Sugar Industry In GDP Can Go Up To 3 Per Cent: Gadkari

Union Budget 2025: Traders Fear Collapse Without Support For Diamond Industry; Demand Tax Cuts, Improved Infrastructure