The State Bank of India (SBI) will be selling four percent of its stake in SBI General Insurance to Axis New Opportunities Fund and PI Opportunities for Rs 481.73 crore. The bank's executive board has approved the sale on Wednesday, SBI said in a statement.
The proposal involves a sale of 86.2 lakh shares at the price of Rs 10 each, which is subject to regulatory approval.
SBI General Insurance is the seventh largest private insurance firm in the country and the deal value its worth at Rs 12,043.25 crore. Axis New Opportunities AIF-I (represented by its investment manager Axis AMC) and PI Opportunities Fund-I, Premji Invest's alternative investment fund, will be purchasing 1.65 percent and 2.35 percent stake, respectively.
After the sale, SBI will be holding 70 percent stake in SBI GI and IAG International will continue to hold 26 percent. The general insurance arm has a significant presence across the country through its own branches, branches of SBI, and regional rural banks accounting for over 29,500 branches. For the financial year 2017-18, it posted a 160 percent surge in profit to Rs 396 crore, on account of a one-time gain of Rs 131 crore.