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SBI Life OFS: Retail quota subscribed 12% by noon

NEW DELHI: The retail portion for SBI Life Insurance’s offer for sale (OFS) was subscribed 12 per cent of the base size by Friday noon.

The retail quota received bids for 4,08,042 shares against the base size of 35,00,000 shares.

Earlier on Thursday, the quota for non-retail portion saw combined bidding for 8.5 crore shares, covering 2.7 times the base size of 3.5 crore shares. The aggressive non-retail bidding prompted parent SBI to exercise the option to retain oversubscription up to one crore shares over the 3.5 crore base shares put on offer.

The floor price for the sale was fixed at Rs 770 per share while SBI has received bids at about Rs 781.03 per share, sources said. SBI is now looking to offload 4.5 per cent in SBI Life Insurance for about Rs 3,515 crore. SBI Life needs to meet the minimum public shareholding norm of 75 per cent soon.

SBI held 62.10 per cent stake in the life insurance company as on June 30 while BNP Paribas Cardif holds 5.2 per cent, reduced from 22 per cent earlier. Sebi regulation did not consider the sale by BNP Paribas as promoter stake sale.

Source: Economic Times