SBI to sell 3.9 per cent stake in SBI Life for Rs 1,794 crore

Chennai: State Bank of India (SBI) on Friday said it has decided to sell 3.9 per cent stake in its life insurance subsidiary – SBI Life Insurance Company Ltd – for Rs.1,794 crore.

In a statement, SBI said the decision was taken at its Executive Committee meeting of the Board on Friday.

The transaction has valued SBI Life at Rs.46,000 crore.

According to SBI, an investment vehicle affiliated with KKR-managed funds and an affiliate of Temasek, the Singapore based investment Company, will each purchase 1.95 crore shares from SBI.

The transaction completion is subject to regulatory approvals.

Upon completion of the transaction, SBI will hold 70.1 per cent stake in SBI Life while its joint venture partner, BNP Paribas Cardif, will continue to hold 26 per cent.

Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited acted as the exclusive financial advisors for the transaction.

According to SBI Chairperson Arundhati Bhattacharya, the valuation of SBI Life at Rs 46,000 crore reflects the significant value creation since its inception in 2001.

KKR India Member & CEO Sanjay Nayar said: “We see exciting growth opportunities for Indian insurers stemming from increasing savings, a rising middle class and rapid urbanisation. We look forward to supporting SBI Life’s long-term growth alongside these high-caliber partners, and are excited to enhance financial access for citizens across the country and promote the development of a more inclusive financial services industry.”