State Bank of India (SBI) board approved divestment of 2.1% stake in SBI Life Insurance Co through offer for sale process through stock exchange mechanism.
The Executive Committee of the Central Board (ECCB) of Directors of State Bank of India approved the divestment of 2.10 crore equity shares representing 2.1% stake of its insurance business, SBI Life Insurance Company to achieve minimum public shareholding (MPS) of 25% through offer for sale (OFS) process via stock exchange mechanism. The disclosure was released after trading hours yesterday, 11 June 2020.
SBI set a floor price of Rs 725 for the OFS, which opened for non-retail investors on Friday, 12 June 2020 and for both retail as well as non-retail investors as on Monday, 15 June 2020. The stake sale will be conducted during the market hours and through the separate designated window of Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).
Shares of SBI were down 3.10% to Rs 171.70. The stock hovered in the range of Rs 170 to Rs 173.15 so far.
The scrip rose 2.99% in a month. On the technical front, the stock's RSI (relative strength index) stood at 48.212. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading below its 50-day moving average (DMA) placed at 176.04 and its 200-day moving average (DMA) placed at 267.06.
On a standalone basis, SBI's net profit surged 327.1% to Rs 3,580.81 crore on a 4.1% rise in total income to Rs 78,758.85 crore in Q4 March 2020 over Q4 March 2020.
SBI is an Indian multinational, public sector banking and financial services statutory body. As of 31 March 2020, the Government of India holds 57.03% stake in the bank.
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