SBI Life stock closes higher amid report Carlyle-GIC consortium eyeing 10% stake in homegrown insurer
The SBI Life Insurance Company stock closed higher today amid a media report that US-based private equity giant The Carlyle Group and Singapore's sovereign wealth fund GIC will jointly buy a 10% stake in SBI Life Insurance Company from insurer BNP Paribas Cardif.
International insurance firm BNP Paribas Cardif is selling the stake in the homegrown life insurer to meet regulatory norms for a public float.
The SBI life Insurance stock rose up to 5.08% to 603 level intra day compared to its previous close of 573.85 on the BSE.
The stock rallied in last 30 minutes of trade and closed 2.67% or 15 points higher at 589.20 on the BSE.
The stock opened at a loss of 3.46% at 573.85 level on the BSE.
8 of 19 brokerages rate the stock "buy" and 11 'outperform', according to analysts' recommendations tracked by Reuters.
The large cap stock has lost 15.78% during the last one year and fallen 15.05% since the beginning of this year. The stock closed above its 50 day moving average of 573.81 but below its 200 day moving average of 619.24 on the BSE.
According to an Economic Times report, a consortium of Carlyle and GIC will purchase shares at Rs 510-520 apiece. The total deal size would be Rs 5,100-5,200 crore.
The proposal for the stake sale deal is awaiting nod for the insurance regulator Insurance Regulatory and Development Authority (IRDA), the report added.
BNP Paribas, Kotak Mahindra Capital and Citigroup will manage the share sale.
BNP Paribas Cardif is the life, property and casualty insurance subsidiary of French bank BNP Paribas. Currently, it holds 22% stake in SBI Life.
State Bank of India holds a 62.1% stake in SBI Life. The insurer made its stock market debut in October 2017.
SBI Life Insurance Company offers a range of services, such as premium calculator, retirement planner, child education planner and tax calculator. Its individual plans include unit linked plans, child plans, retirement plans, protection plans and savings plans. Its group plans include corporate solutions, group loan protection products and group micro insurance plans.
Edited by Aseem Thapliyal