India's largest state-owned lender State Bank of India
's board on Wednesday approved divestment of at least 3.5% of stake in SBI Life Insurance.
The divestment would be carried out to achieve the minimum public shareholding threshold of 25%.
Further, the mechanism used to divest would be offer for sale.
The bank's filing on the NSE stated, "Divestment of 3,50,00,000+1,00,00,000 equity shares constituting 3.5% with an oversubscription upto 1% of our stake in SBI Life to achieve Minimum Public Shareholding of 25% (Part of Bank's share for MPS) through Offer for Sale process through Stock Exchange mechanism as per the regulatory prescription."
State Bank of India ended at Rs285.30 up by Rs7.4 or 2.66% from its previous closing of Rs277.90 on the BSE.
The scrip opened at Rs278.90 and touched a high and low of Rs285.85 and Rs278.45 respectively. A total of 2,17,43,268 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs2,54,619.17cr.