SBI today said that the central board today approved issuance of 13.63 crore shares to minority shareholders of its three listed subsidiaries and Government of India, that wholly owns Bharatiya Mahila Bank (BMB), as part of consolidation exercises.
The board has "approved issuance of maximum 13,63,65,146 equity shares, of face value of Re 1 each, to the shareholders of State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and the Government of India for its shareholding in BMB as on the record date at the agreed swap ratio...," SBI said in a filing to the BSE.
SBI will issue 4.42 crore shares to Government of India for its 100 per cent stake in BMB.
So the government is expected to get capital appreciation of 20 per cent to Rs 1,207 crore over its investment of Rs 1,000 crore in BMB as per the today's closing price.
Shares of SBI closed at Rs 272.90, down 3.09 per cent per share on the BSE.
Public holding in SBBJ is 24.93 per cent while in SBT is 20.91 per cent. In SBM, the public holding was 10 per cent at the end of September.
As per the agreed swap ratio, minority shareholders or public shareholders of SBBJ will get 28 equity shares of SBI of the face value of Re 1 each to be issued in lieu of 10 equity shares of SBBJ of the face value of Rs 10 each.
Minority shareholders of SBM and SBT will get 22 equity shares of SBI as against 10 equity shares of SBM and SBT of the face value of Rs 10 each.
It also said as much as 4,42,31,510 shares of SBI of the face value of Re 1 will be issued to the Government of India for their shareholding in BMB. Government holds 100 crore shares of the face value of Rs 10 each in BMB.
The entire exercises will result in increase in the issued capital of SBI from Rs 776.35 crore to Rs 789.99 crore subject to approval of the schemes of acquisition of SBBJ, SBM, SBT and BMB by the Government of India.
With the merger of all the five associates and BMB, SBI will become a global-sized bank and could compete with the largest in the world, with an asset base of Rs 37 trillion (Rs 37 lakh crore) or over USD 555 billion, with 22,500 branches and 58,000 ATMs. It will have over 50 crore customers.
SBI has close to 16,500 branches, including 191 foreign offices spread across 36 countries.
It first merged State Bank of Saurashtra with itself in 2008. Two years later, State Bank of Indore was merged with the parent.
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