NEW DELHI: State Bank of India (SBI) at its Executive Committee meeting of the Board approved the sale of 86.2 lac shares of Rs 10 each, summing up to four per cent stake in its subsidiary, SBI General Insurance Company Limited (SBI GI), for Rs 482 crore.
Axis New Opportunities, represented through its investment manager Axis AMC Ltd., and Premji Invest, will purchase 1.65 per cent and 2.35 per cent stake, respectively, from SBI. The proposed transaction values SBI GI at over Rs 12,000 crores, and completion of the transaction would be subject to regulatory approvals.
Upon completion of the transaction, SBI will hold 70 per cent stake in SBI GI, while its joint venture partner, IAG International Pty Ltd., will continue to hold 26 per cent.
"State Bank of India happily welcomes Axis New Opportunities AIF and Premji Invest as our incoming partners in SBI GI. Insurance segment is still young and nascent in India, it is a highly under penetrated market, we foresee a significant scope of growth for SBI GI to achieve size, scale and profitability. We shall continue to extend our support and are excited about SBI GI's bright journey ahead," said Rajnish Kumar, Chairman, SBI.
Kotak Mahindra Capital Company Limited acted as the financial advisor for the transaction while J. Sagar Associates was the legal advisor for the transaction.