On Tuesday, shares of SBI Life Insurance fell more than 5 percent after the company's foreign partner, BNP Paribas Cardif said that it plans to sell some of its stake through an offer for sale (OFS) at a steep discount of 8.5 percent to the stock's closing price on Monday. It will sell up to 2.5 crore shares in SBI Life Insurance, representing 2.5 percent stake for at least Rs 1,625 crore.

In a BSE filing on Monday, SBI said that a two-day OFS will begin on Tuesday, for which the floor price has been fixed at Rs 650 per share. The price is lower than Monday's closing rate of Rs 710.45 per share on the BSE.

The OFS will open for non-retail investors on Tuesday and for others on Wednesday. In the filing, SBI Life said that 10 percent of the stake sale has been kept reserved for retail investors.

BNP Paribas held 7.7 crore shares, representing 7.7 percent stake in the insurance company as on 31 March. The State Bank of India holds 62.10 percent stake in the company.

BNP Paribas Cardif has been gradually off-loading its stake in the company.

On 29 March, BNP Paribas Cardif sold 5 crore shares of the insurance company for Rs 2,889 crore. Earlier that month, Carlyle Group had acquired 9 percent stake in SBI Life from BNP Paribas Cardif.