SBI Life dips 4 per cent on back of OFS

SBI Life Insurance Company Limited's promoter BNP Paribas Cardif has initiated an offer for sale (OFS) to sell 2.5 per cent equity shares of the company through separate windows on the exchanges.

SBI Life Insurance Company is a joint venture between State Bank of India and BNP Paribas Cardif, which is a insurance subsidiary of the BNP Paribas Group.

The offer is open for non-retail investors on June 25, 2019, whereas retail investors can subscribe to the offer on Wednesday, June 26. The floor price for the offer is Rs. 650 per share.

The total issue size is 25,000,000 equity shares of face value of Rs. 10 each, of which 10 per cent of the offer is reserved for retail investors. Retail investors can place a bids for not more than Rs. 2,00,000 aggregated across stock exchanges and have the option of placing their bid at Cut-Off Price. However, no discount is offered to retail investors.

Also, under non-retail investor category, 25 per cent of the OFS is reserved for Mutual Funds and Insurance Companies, subject to receipt of valid bids as per the allocation methodology.

Reacting to this, the stock of SBI Life Insurance was experiencing selling pressure during Tuesday's morning session and was quoting Rs. 680.05 per share, down by Rs. 30.40 or 4.28 per cent at 10:20 hours.