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State Bank of India (SBI), the country’s largest lender, has fixed the price for shares to be issued to the government at Rs 295.59 for a face value of Re 1. The extra is the premium.
It would issue 100 million shares on a preferential basis for Rs 2,969.99 crore. The SBI stock was down 2.2 per cent at Rs 280.35 at close on the BSE.
Following capital infusion, the government holding in SBI will increase to just over 59 per cent. SBI is the largest recipient of capital of the Rs 6,990 crore that the government is investing in shares of public sector banks in 2014-15.
The executive committee of the central board of the bank approved the pricing at its meeting on Friday, SBI informed the BSE.
The price for the preferential issue was arrived at taking into consideration February 20, 2015, as the relevant date. The pricing has been fixed in accordance with Sebi (Issue of Capital and Disclosure Requirements) Regulations, 2009.
