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 minimum public shareholding requirement in accordance with applicable law.
As per the law, a company should have minimum public float of 25 per cent.
"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 stake was sold to public. As a result, SBI sold 8 per cent stake and BNP Paribas reduced it by 4 per cent.
SBI and BNP Paribas ended up with 62.1 per cent and 22 per cent stake, respectively, in the firm after the IPO.
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