Carlyle Purchases 9% Stake in SBI Life

Get ₹1 Cr. Life Cover at just ₹411/month*
No medical checkup required
Save more with upto 10% discount
Covers COVID-19
Tax Benefit
Upto Rs. 46800
Life Cover Till Age
99 Years
8 Lakh+
Happy Customers

*Tax benefit is subject to changes in tax laws. *Standard T&C Apply

** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines

Get ₹1 Cr. Life Cover at just ₹411/month*
No medical checkup required
Save more with upto 10% discount
Covers COVID-19
+91
View plans
Please wait. We Are Processing..
Get Updates on WhatsApp
By clicking on "View plans" you agree to our Privacy Policy and Terms of use
  • As per the prices of the shares of SBI Life, its 9% stake are purchased Carlyle Group, which worth around Rs.5, 500 Crore.
  • Being the major shareholder SBI now holds 62.1% stake whereas BNP Paribas and Carlyle are holding 12.8% and 9%, respectively.

The life insurance sector of India has seen one of the biggest deals of the recent times, wherein the Carlyle Group, a world famous privately managed equity firm, has acquired 9% stake in the SBI Life Insurance Company Limited from the BNP Paribas Cardif SA. As per the closing stock price of the SBI Life Insurance Company on the 01st of March’2019, the stake of 9% is worth approximately Rs.5, 500 crores.

The shares of SBI Life were up by 5.47% and closed at Rs.612.25. Before this deal, the last big deal in the life insurance sector was in 2018 August, wherein Madison Capital, Rakesh Jhunjhunwala, and Consortium of West bridge Capital agreed to acquire Star Health and Allied Insurance Company Limited at approximately Rs.6, 000 – 6, 500 crores.

Sunil Kaul, head and managing director (South-East Asia) of buyout advisory team of Carlyle Asia said that the Indian life insurance industry has substantial growth potential and the reason for the same is favorable demographics of the country and improved focus of the people on monetary savings.

Following this, the French insurance provider BNP Paribas and Carlyle now hold 12.8% and 9% stake of SBI Life Insurance Company, respectively and State Bank of India remains the major shareholder in this association with 62.1% stake.

Sanjeev Nautiyal, Chief Executive and Managing Director of SBI Life say that they are very much delighted to have Carlyle as one of their shareholders and the trust of this global organization on SBI group would for sure strengthen and enhance the status of SBI Life in Indian life insurance industry.

BNP Paribas was looking out to sell some part of its stake in SBI Life Insurance since September 2018. This sale of the stake was the part of the moment for bringing down the stakes held by the main promoter of the life insurance company to at least 75% according to the law of SEBI. This rule is for the listed companies wherein it is mandatory to have minimum public shareholding of 25% in three years of the listing.

The SBI Life Insurance Company became public on 2017 September through Initial Public Offering (IPO) with two promoters – BNP Paribas and SBI. Both these companies collectively sell the stake of 12%, wherein BNP Paribas sells 4% and SBI sells 8%. The IPO at that time valued the company at Rs.70, 000 Crore.

Apart from this, the True North acquired a good stake in the health insurer Max Bupa Health Insurance Company Limited for approximately Rs.500 crore.

Last year, the Royal Sundaram Company sold its 40% stake to Ageas Insurance NV for Rs.1, 520 crores. Other PE company Warburg Pincus Llc has acquired a stake of 26% in India First Life Insurance Company Limited for approximately $100 million in June of the last year.

Written By: PolicyBazaar

Life insurance articles

Recent Articles
Popular Articles
Max Life Insurance 1 Crore Plan

14 Oct 2021

With many novel diseases surfacing, life seems to be fleeting...
Life Insurance for Senior Citizens Over 70

14 Oct 2021

Although you may be past the opportunity to buy life insurance...
Life Insurance for Senior Citizens over 80

14 Oct 2021

If you are the bread earner for your family, no time is bad to...
Life Insurance for Armed Forces

14 Oct 2021

The Indian arm forces are our pride. They risk their lives to...
Life Insurance for 50-year Old

14 Oct 2021

We all have had this thought at least once in our lives, ‘what...
How to Check LIC Policy Status, Details, Statement via Online/SMS/Call
Last year, Mr. Rajiv Verma bought a Child LIC policy to provide financial security for his kid's future. However...
LIC Online Premium Payment
The Life Insurance Corporation of India is one of the most recognized and trustworthy names in the Indian life...
How to Check PLI Status?
How to Check PLI Status? Dating back to February, 1884, PLI (Postal Life Insurance) is one of the oldest life...
LIC Login: LIC Customer Login Process at Online Portal
The LIC login portal is user-friendly. With the LIC online login facility, customers can easily avail themselves of...
Life Insurance: Checking Policy Status
Life Insurance: Checking Policy Status Buying life insurance policy is the first step towards building a corpus...
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL