Private equity giant Carlyle Group LP and Singapore's sovereign wealth fund GIC Pte. Ltd. are acquiring a 10% strategic stake in SBI Life Insurance Co. Ltd., The Economic Times reported, citing two people familiar with the matter.

The seller is French insurer BNP Paribas Cardif, which is planning to trim its 22% interest in SBI to meet regulatory conditions needed for a public float, the report noted. SBI is a joint venture between BNP and the State Bank of India.

The news outlet reported Dec. 18 that Carlyle was set to beat out KKR & Co. and Temasek Holdings (Pte.) Ltd., which were also interested in acquiring the stake.

Carlyle and GIC will pay about 510 rupees to 520 rupees per share for the stake, the sources said, adding that the consideration is at about a 9.2% discount to SBI's Dec. 26 closing price of 572.55 rupees per share.

The report highlighted that the aggregate deal size will be about 51.00 billion rupees to 52.00 billion rupees and is considered the second-largest transaction in the sector in 2018.

The investment proposal was submitted to India's Insurance Regulatory and Development Authority during the week of Dec. 17. It is expected to be approved in the coming weeks, the report noted.

BNP Paribas, Kotak Mahindra Capital and Citigroup are presiding over the sale process.

BNP Paribas and Carlyle did not comment on the matter, while GIC did not respond to an email sent by the news publication.

As of Dec. 27, US$1 was equivalent to about 70.24 Indian rupees.