Carlyle makes $536m realization from India's SBI Life
The Carlyle Group has sold more than two-thirds of its remaining stake in India-listed life insurance company SBI Life for approximately INR39.4 billion ($536 million) via a bulk transaction.
The private equity firm sold 41 million shares for INR960 apiece, according to stock exchange data. It retains 19 million shares – or a 1.9% interest – worth approximately INR19.1 billion. SBI Life’s stock spiked 4.2% to reach INR1,007.95 during early trading on May 7. It closed at INR1,004.30 on May 10, close to the all-time high.
Carlyle paid INR46.4 billion for a 9% stake in the company in February 2019. It acquired 90 million shares from BNP Paribas at INR515. Following the transaction, BNP Paribas, which launched SBI Life in 2001 alongside the State Bank of India (SBI), retained a 12.8% interest. SBI is the majority shareholder with 62.1%. The company listed in 2017, raising INR84 billion in its IPO.
A first partial exit for Carlyle came eight months after the investment. It sold 30 million shares at INR938.83, generating INR28.2 billion. The stock struggled in early 2020, falling as low as INR605.60, but has since recovered. SBI Life is up 44% since its IPO and up 72% since Carlyle invested.
SBI Life claims to be one of India’s leading private life insurance providers, with over 17,000 employees across 947 offices and a network of around 170,000 individual distribution agents. Gross written premiums totaled INR406.4 billion for the 12 months ended March 2020, up 23% year-on-year, while total assets exceeded INR1.6 trillion. Net profit rose 7% to INR14.2 billion.
This represented Carlyle’s second investment in a State Bank of India-controlled entity. In 2017, it bought a 26% stake in credit card company SBI Cards & Payment Services for $274 million. State Bank of India held the rest. The business went public in March 2020 with a market capitalization of INR710 billion. Carlyle offloaded 10% of its holding, generating proceeds of INR70.4 billion.
Two months ago, the private equity firm sold approximately one-quarter of its remaining 15.8% interest for INR39.4 billion.
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