SBI, to meet SEBI’s requirement of keeping the public float at 25%, stated yesterday afternoon after market hours that it plans to divest 3.5% stake in SBI Life Insurance, with an option of oversubscription of 1%.

The floor price is set up at Rs.770/share, which is at a 4% discount to yesterday’s closing price of Rs.799.65. Today, the sale is open for institutional investors and tomorrow, it will be for retail investors.

Post this stake sale, SBI’s stake in its insurance arm will come down to 57.6% from 62.1%. BNP Paribas Cardif, a subsidiary of the France-based BNP Paribas group, holds 5.20%. Carlyle Group holds 9% and this is not categorized under public holding despite having bought this stake in March this year.

The stock price has reacted ‘mildly’ positively to this news; at least as of now. The stock opened today at Rs.287.05, going up 1% to Rs.288. Its 52-week high is at Rs.373.70.