The Canadian fund sells 2% of SBI Life

MUMBAI: The Canada Pension Plan Investment Board (CPPIB) sells up to 2.3 crore of shares of SBI Life Insurance, representing about 2.3% of the company, for around Rs 2,800 crore. CPPIB mandated BNP Paribas to execute the trade through block trades on Thursday. The Canadian pension fund has set a price range of Rs 1,159 to Rs 1,220 per share for the transaction, market sources said. At the lower end of the band, the shares would be offered at a 5% discount from SBI Life’s closing price of Rs 1,220 on BSE on Wednesday.
The size of the base offering is 2 crores of SBI Life shares. He has the option of increasing the size of the offering by an additional 30 lakh shares, bringing the total to 2.3 crore shares. According to ESB shareholder data, at the end of June, the Office held nearly 2.9 crore of SBI Life shares, or 2.9% of the private life insurer’s equity.
The transaction is expected to be executed through the expedited book-building process. As part of this process, the broker handling the transaction, after the close of the trading day, sends the term sheet to the large institutions to express their interest in buying shares of the proposed block. Once these institutions inform the broker managing the offer, the delivered because the case is prepared. Once the book is built, stocks change hands the next day on the exchanges in large blocks.
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