Carlyle picks 9 % in SBI Life for Rs 4,635 crore

Global investment firm The Carlyle Group on Friday bought 9% stake in SBI Life Insurance from BNP Paribas Cardif for `4,635 crore. According to the bulk deal on BSE, group firm CA Emerald Investments purchased 9 crore shares at `515 per share, at a discount from the market price. The stock price of SBI Life on Friday closed at `612.25 gaining 5.47%.

Post the transaction, BNP Paribas Cardif and CA Emerald Investments now own 12.8% and 9% in SBI Life Insurance, respectively, while State Bank of India (SBI) remains the majority shareholder with a 62.1% stake in the life insurer.

SBI Life in the exchange filing said, “SBI Life Insurance Company Limited, has been informed that CA Emerald Investments has successfully acquired 90,000,000 equity shares of our Company, cumulatively representing 9.0% of the total issued and paid-up equity share capital of our Company, as on March 1, 2019.”

Dinesh Kumar Khara, managing director, global banking & subsidiaries, SBI, said, “We are pleased with the tremendous strides made by SBI Life in establishing its position in the life insurance industry and appreciate the support given by BNP Paribas Cardif in this journey. We are also thrilled to welcome Carlyle, with whom we have an existing relationship through SBI Card, and look forward to its support to SBI Life in bolstering its franchise in the country.”

Carlyle has invested in the financial services industry in Asia-Pacific for 20 years, deploying more than $4 billion of equity in more than 15 private equity investments as of December 31, 2018. In India, Carlyle’s recent investments in financial services include PNB Housing Finance Limited and SBI Card.

Sunil Kaul, managing director of the Carlyle Asia Buyout advisory team, said, “The life insurance industry in India has strong growth potential thanks to favourable demographics and an increasing focus on financial savings. SBI is the most trusted brand in financial services, with an unparalleled nationwide branch network and a commitment to providing convenient access to quality financial services to every Indian.”

He also added that SBI Life, led by a strong management team, is helping deliver this promise in the life insurance space and is well positioned to further benefit from industry trends.

State Bank of India