The proposed transaction values SBI General Insurance at over Rs 12,000 crores.State Bank of India (SBI) at its executive committee meeting of the board held today, approved the sale of 86.2 lakh shares of Rs 10 each, equaling to 4 per cent stake in its subsidiary SBI General Insurance Company Limited (SBI GI) for Rs 482 crores.
The Axis New Opportunities AIF - I (represented through its investment manager Axis AMC Ltd) and PI Opportunities Fund - I (an AIF of Premji Invest) will purchase 1.65 per cent and 2.35 per cent stake respectively from the bank, said a press release issued by the lender.The proposed transaction values SBI General Insurance at over Rs 12,000 crores.
However, the transaction completion is 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."SBI 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.SBI has total advances and deposits of approximately Rs 20 tn and Rs 27 tn respectively as on June 30, 2018 with 22,428 branches, including 210 foreign offices spread across 35 countries, making it the largest banking and financial services company in India, the press release said.
SBI GI is a joint venture between State Bank of India and IAG International Pty Ltd (IAG).