BNP Paribas has sold 9 per cent of its stake in SBI Life Insurance Company Ltd to Carlyle Group for Rs 4,600 crores. According to a statement, BNP Paribas Cardif which is a subsidiary to French BNP Paribas group sold 9.2 crore shares or 9.23 per cent stake in SBI Life on the Bombay Stock Exchange.
Out of the 9.2 crores shares, CA Emerald Investments, an affiliate of the Carlyle Group acquired 9 crores of those shares. The stake sale took place at a 10 per cent to its Thursday closing price of Rs 580.50.
Sunil Kaul, managing director of the Carlyle affiliate’s advisory team, said, “The life insurance industry in India has strong growth potential thanks to favourable demographics and an increasing focus on financial savings. SBI is the most trusted brand in financial services.”
Following the stake sale, BNP Paribas Cardif will now own a 12.8 per cent stake in SBI Life whereas, with 62.1 per cent stake, the State Bank of India will remain the largest shareholder. BNP Paribas said the company expects to generate a capital gain after tax of 450 million euros (or about $510 million) from the transaction in the next quarter.
Read EquityPandit’s Technical Analysis Of SBI