SBI to issue shares to govt for Rs 8,800 crore capital infusion

SBI to issue shares to govt for Rs 8,800 crore capital infusion
Click for full image

New Delhi: State Bank 0f India on Friday said it will issue equity shares to government at a price of Rs 300.82 a piece against a capital infusion of over Rs 8,799.99 crore.

The issue price is higher than the prevailing trading price on the stock exchanges.

The committee of directors for capital raising at a meeting held on Friday approved the issue price.

“The committee of directors… has accorded its approval to fix the issue price of Rs 300.82 per share of face value of Re 1 each, including premium of Rs 299.82 per share,” SBI said in a regulatory filing.

SBI will issue 29,25,33,741 shares on a preferential basis to the government at the price of Rs 300.82 per share for a consideration of Rs 8,799.99 crore, it said further.

Government in October had unveiled a mammoth Rs 2.11 lakh crore capital infusion into the public sector banks in the next two financial years, including Rs 80,000 crore that banks have to raise by issuing bonds.

Stock of SBI closed 2.55 per cent down at Rs 271.75 on the BSE on Friday.

PTI