Carlyle launches block deal to offload partial stake in SBI Life Insurance

Private equity firm Carlyle has launched a block deal to sell around 3 percent stake in SBI Life Insurance and make a part exit, sources with knowledge of the matter told Moneycontrol.

At current market price, a 3 percent stake in SBI Life Insurance is valued at around Rs 3,000 crores. Carlyle currently holds 9 percent stake in the company through its investment arm CA Emerald Investments.

“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,’’ said a source familiar with the transaction. The SBI Life Insurance stock has rallied 35 percent in the past six months.

The offer price range is Rs 930 to Rs 940 and is at a discount of 6-7 percent of the closing price of Rs 1000.05 as on November 18, 2019, sources added. Merchant bank JP Morgan is the advisor to the block deal, they said.

SBI Life Insurance, Carlyle and JP Morgan were not immediately available for comment.

Source: Money Control