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BNP Paribas Cardif to reduce stake in SBI Life insurance

Devdiscourse News Desk
Updated: 24-09-2018 22:44 IST
BNP Paribas Cardif to reduce stake in SBI Life insurance

BNP Paribas Cardif, the joint venture partner in SBI Life Insurance, Monday said it may consider reducing its stake in the company to ensure compliance with the minimum public shareholding requirement in accordance with applicable law.

As per the law, a company should have the minimum public float of 25 percent.

"BNP Paribas Cardif has also confirmed that it is yet to make any firm decisions regarding the size, timing or nature of such potential reduction in their shareholding of the company," SBI Life said in a filing to stock exchanges.

SBI Life was 74:26 joint venture between India's largest lender State Bank of India (SBI) and BNP Paribas Cardif (BNPPC) -- the insurance holding company of France.

Following the initial public offer last year, 12 per stake was sold to the public. As a result, SBI sold 8 percent stake and BNP Paribas reduced it by 4 percent.

SBI and BNP Paribas ended up with 62.1 percent and 22 percent stake, respectively, in the firm after the IPO.