Global buyout house Carlyle has bought a nine per cent stake in IndiaâsÂ SBI Life Insurance Company for more than $650m.
Carlyleâs deal saw it pick up 90 million shares at INR515 each on March 1, well below the INR580 company shares were trading at before news of the deal broke.
Shares in the business had since risen to more than INR599 each before the end of trading on Friday, given the company a market capitalisation of more than INR610bn ($8.6bn).
Carlyleâs equity for this investment came from CA Emerald Investments, an affiliated entity of its $6.55 Fund V.
SBI remains the majority shareholder in the business with about 62 per cent of the comapny, while BNP Paribas CardifÂ owns 12.8 per cent.
Carlyle Asia Buyout advisory team managing director Sunil Kaul said, âThe life insurance industry in India has strong growth potential thanks toÂ favorableÂ demographics and an increasing focus on financial savings.
âSBI is the most trusted brand in financial services, with an unparalleled nationwide branch network and a commitment to providing convenient access to quality financial services to every Indian.
âSBI Life, led by a strong management team, is helping deliver this promise in the life insurance space and is well-positioned to further benefit from industry trends. We are excited about the companyâs growth prospects and proud to have this opportunity to support the journey.â
Carlyle has invested in the financial services industry in Asia Pacific for 20 years, deploying more than $4bn of equity in more than 15 private equity investments as of the turn of the year.
Carlyleâs recent investments in financial services include PNB Housing Finance Limited and Indiaâs SBI Card.
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