State Bank of India Ltd. has decided to divest 4 per cent of its stake in its general insurance arm for Rs. 482 crores to an alternative investment fund promoted by Axis asset management company and PremjiInvest, the investment arm of Wipro Ltd. According to SBI, the deal values SBI General Insurance at over Rs 12,000 crore,
The bank said in a statement after a board meeting that Axis New Opportunities AIF-I represented through its investment manager Axis AMC and PI Opportunities Fund-I, an AIF floated by PremjiInvest, will purchase 1.65 per cent and 2.35 per cent stake, respectively from SBI.
SBI Chairman Rajnish Kumar said, “State Bank welcomes Axis New Opportunities AIF and PremjiInvest as our incoming partners in SBI General Insurance. We shall continue to extend our support and are excited about SBI GI’s bright journey ahead.”
The bank said the transaction will be completed after necessary regulatory approvals. On completion of the transaction, SBI will hold 70 per cent stake in SBI General Insurance, while its joint venture partner IAG International will hold 26 per cent.