SBI's JV Partner IAG to Sell Stake in SBIGI To Premji Invest, Warburg Pincus
Published On 02 Dec 2019 By Sakshi Aggarwal
The public sector lender State Bank of India has said that its joint venture partner IAG will sell full 26% stake in its subsidiary to Napean Opportunities and WP Honey Wheat Investment Ltd. for around Rs. 3,200 Crore, that values the company Rs. 12,800 Crore.
It was said in a regulatory filing that, "IAG has entered into definitive agreements to sell the whole of its 26 per cent interest in SBI General via two transactions.”
India’s largest lender SBI and IAG (Insurance Australia Group) today own 70% and 26% respectively in SBI General.
SBI says, “The agreements have been reached with Napean Opportunities LLP (an affiliate of Premji lnvest) to acquire a 16.01 per cent interest and WP Honey Wheat lnvestment Ltd. (Warburg Pincus Group) to acquire a 9.99 per cent interest.”
The transactions are affected by regulatory processes as well as approvals.
Valued at more than Rs. 1,200 Crore lately, SBI General is a joint venture between SBI and IAG.
The Chairman of SBI, Rajnish Kumar last month said that the lender has quit its idea of taking its general insurance arm public. The reason given was that there was no requirement of additional capital.
With a shared capital of Rs. 210 Crore, SBI General has recorded 32.83% growth in gross written premium in Financial Year 2019 at Rs. 4,717 Crore, as compared to broader industry growth of 12.95%.