SBI Life Insurance falls 2% as two-day offer for sale by SBI opens

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Shares of SBI Life Insurance Company fell 1.6 percent to Rs 792 intraday on September 12 after the two-day offer-for-sale of stake by SBI opened.

The insurance company, on September 11, said State Bank of India proposed to sell up to 3.5 crore equity shares—representing 3.50 percent of the total paid-up equity—on September 12-13.

The offer-for-sale issue opened on September 12 only for non-retail investors, it will be available for retail as well as non-retail investors the next day.

The stock has corrected more than 5 percent in three sessions, but has rallied more than 40 percent in last nine months. At 1006 hours, the stock was quoting at Rs 792.00, down Rs 6.75, or 0.85 percent, on the BSE.

SBI has kept option open to additionally sell up to one crore equity shares of insurance company. In the event the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will in aggregate, be referred to as the ‘sale shares’, SBI Life said in its BSE filing.

The stake sale will happen through the separate designated window of BSE and National Stock Exchange of India.

The floor price has been fixed at Rs 770 per share, a 3.6 percent discount to September 11 closing price.

SBI held 62.10 percent stake in the life insurance company, as per shareholding pattern on June 2019.