The State Bank of India (SBI) has decided to divest up to 4.5% stake in its insurance joint venture SBI Life Insurance to raise up to INR34.65bn ($487.6m).

The divestment will enable the SBI, the largest public sector bank in India, to reduce promoter shareholding in the venture to comply with the regulatory requirements.

As per the plan, the bank will offload at least 3.5% stake through an offer-for-sale with an option of oversubscription of 1% of the total issued and paid up equity share of SBI Life.

The floor price for the share sale, according to SBI, has been fixed at INR770 ($10.84) per equity share.

In a regulatory filing, SBI said: “The seller (SBI) proposes to sell up to 35 million equity shares, in aggregate representing 3.5% of the total issued and paid-up equity share capital of the company (SBI Life Insurance) on September 12, 2019 for non-retail investors and on September 13, 2019 for retail investors and for non-retail investors who choose to carry forward their un-allotted bids.”

Following the completion of the share sale, SBI’s shareholding in SBI Life will decrease to 57.6% from 62.1%.

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Paribas Cardif, a subsidiary of the French bank BNP Paribas group, will own 5.2% of the SBI Life after it sold 2.5% of the equity share capital of the JV in June through offer for sale (OFS) mode for INR16.25bn ($235m).

American investment firm Carlyle Group purchased a 9% stake in SBI Life from BNP Paribas Cardif in a transaction valued at around INR55bn ($776.22m).