new Delhi. State Bank of India (SBI) has sold a 2.1 percent stake in its subsidiary SBI Life Insurance Company through a sale offer. This stake has been sold in compliance with shareholding rules. The bank said in a notice to the stock exchanges that the sale offer (OFS) took place in two installments on June 12 and June 15, 2020. The bank has not disclosed the amount raised.
The bank is reported to have sold a total of 2,10,00,000 equity shares, equivalent to a 2.1 percent stake. However, SBI is expected to raise Rs 1,522.50 crores by selling 2.1 crore shares at the minimum price of Rs 725 per share. The face value of these shares is ten rupees. Earlier, on 11 June, SBI Life had informed that the promoter SBI has fixed the minimum price for the sale offering at Rs 725 per share.
SBI said the sale was done to meet the minimum public shareholding rule of SEBI (Securities and Exchange Board of India). After this sale, State Bank's stake in SBI Life has come down to 55.50 per cent from 57.60 per cent earlier.
SBI said it would seek approval from shareholders in mid-July to raise equity capital of Rs 20,000 crore through various channels in the current financial year. State Bank of India (SBI) said in a notice to the stock exchanges that the general meeting of shareholders will take place on 14 July 2020 at the State Bank Auditorium, at the Stat Bank Building, Madam Cama Road in Mumbai.
SBI said that if the situation was not favorable and the local administration did not physically allow a general meeting, then it would be through video conferencing. The bank said it would seek shareholders' approval to raise Rs 20,000 crore or the sanctioned amount from the government and RBI. This will depend on whether the government's stake in the bank does not fall below 52 percent. This capital can be raised through a public issue (follow-on public offering) or private placement or any other means.
This post was published on June 17, 2020 9:25 am
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