SBI Life Insurance Co. Ltd shares declined as much as 7% in intra-day trade on Tuesday after various big block deals took place on both BSE and the National Stock Exchange (NSE) in early morning session.
At 2:16 pm, shares of SBI Life were trading at Rs 944.30 apiece, down 5.6%, after hitting the day’s low of Rs 930. The stock has risen by a massive 66% in the past one year.
Data from the exchanges showed that around 33 million shares of SBI Life Insurance, representing 3.4% of the total paid-up equity, exchanged hands in the several block deals on BSE and NSE. These shares changed hands at an average of Rs 945 apiece and these block deals were worth around Rs 3,210 crore.
The transaction happened just a day after Moneycontrol reported that private equity firm Carlyle has launched a block deal to sell around 3% stake in SBI Life Insurance and make a partial exit. Merchant bank JP Morgan was reported to be the advisor to the block deal.
“SBI Life Insurance has rallied in the past few months and Carlyle is likely to pocket handsome returns with this trade based on their initial investment,’’ a source familiar with the transaction told Moneycontrol. To recall, PE firm Carlyle Group had acquired 9% stake in SBI Life Insurance in March this year.
While announcing its earnings for the quarter ended September, SBI Life had said net profit declined 48% to Rs 129.84 crore compared with Rs 250.53 crore in the corresponding period of the previous fiscal year. Total premium income during the quarter rose to Rs 12,745.38 crore as against Rs 9,638.27 crore a year ago. New business premium (NBP) was up 40% to Rs 7,820 crore in the second half of the current fiscal as against Rs 5,570 crore in the year-ago period.
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