SBI Life Insurance share lost over 2% in early trade today as promoter company SBI is selling 2.1% stake in the life insurer. Share price of SBI Life Insurance fell 2.2% to Rs 725.15 against previous close of Rs 741.45.
The floor price for offer for sale (OFS) is Rs 725 per share. The large cap share trades higher than 20 day and 50 day moving averages but lower than 5 day, 100 day and 200 day moving averages. The stock has gained 8% in one year and fallen 21.62% since the beginning of this year.
At 11:02 am, the share was trading 1.42% higher at Rs 751.95 on BSE. The transaction involves sale of 2.10 crore shares in the life insurer. On March 31, 2020, SBI held 57.6 percent equity stake in the company, while promoter BNP Paribas Cardif held 5.20 percent stake.
On June 12, non retail investors can take part in the sale. On June 15, bboth non retail and retail investors are allowed to participate in the share sale.
Market cap of SBI Life stood at Rs 75,102 crore on BSE.
"State Bank of India ("the Promoters of the Company")(the "Seller") proposes to sell up to 2,10,00,000 Equity Shares (the "Sale Shares"), in aggregate representing 2.10% of the total issued and paid-up Equity Share capital of SBI Life Insurance Company Ltd ("the Company") on June 12, 2020 ("T Day") (for non-retail investors only) and on June 15, 2020 ("T+1 Day") (for retail investors and for non-retail investors who choose to carry forward their un-allotted bids), through the separate designated window of BSE Limited ("BSE") and National Stock Exchange of India Limited ("NSE" and together with BSE, the "Stock Exchanges"), SBI Life said in a communication to BSE.