Mumbai: Canadian Pension Plan Investment Council (CPPIB) sells up to 2.3 shares of SBI life insurance crore, representing around 2.3% of the company, for around Rs 2,800 Crores.
CPPIB has mandated BNP Paribas to carry out transactions through block transactions on Thursday.
The Canadian pension fund has set a ribbon price of 1,159-1,220 per share for an agreement, the source of the market.
At the lower end of the band, the stock will be offered with a 5% discount for the closing price of SBI Life of Rs 1,220 in BSE on Wednesday.
The basic offer size is for 2 crore shares from SBI Life.
It has the option to increase the size of the offer by 30 other Lakh shares, with a total of 2.3 crore shares.
According to share ownership data in BSE, at the end of June, CPPIB held nearly 2.9 crore shares from SBI Life, representing 2.9% of the equity base of the private life insurance company.
This agreement will be executed through an accelerated book-making process.
In this process, the broker manages an agreement, after the closing of the trade that day, sends the coverage of sheets to large institutions to express their interest in buying shares from the block offered.
After this institution told the broker who managed the offer, the book for the agreement was prepared.
After the book was built, the shares renamed the next day on the stock exchange in the big block.
Canada Funds to sell 2% in SBI life
