The share price of SBI Life Insurance plunged over 4 percent after a Canadian pension fund announced selling a 2 percent stake in the firm. The shares will be offered in the range of Rs 1,159 to Rs 1,220 per share.
The sale of stake by Canada Pension Plan Investment Board (CPPIB) will fetch Rs 2,440 crore at the top end. If the sale goes through, CPPIB will clock over 110 percent returns from its investment.
At 9:30 am, the shares were changing hands at Rs 1,179, down 3.4 percent. In the opening trade, a total of 2.4 crore shares were changing hands against a daily average of 2.8 lakh registered in the past two weeks, exchange data showed.
Currently, CPPIB holds a 2.86 percent stake in the firm. If it finds the demand is strong, CPPIB may sell its entire stake. BNP Paribas is handling the share sale.
CPIBB had bought over 2.24 million shares during the IPO of SBI Life four years ago. At the time, the shares were worth Rs 700 apiece. Again in March 2019, the firm bought over 20 million shares at Rs 578 from a co-promoter of SBI Life, BNP Paribas Cardif.
Current shareholders in the insurance company include State Bank of India (55.5 percent), Government of Singapore (2.69 percent), Carlyle (1.9 percent), ICICI Prudential Life Insurance (1.36 percent), and BNP Paribas (0.2 percent).