SBI to raise Rs 5,681 crore from preferential issue to government
State Bank of India on Friday said it will raise Rs 5,681 crore by issuance of preferential shares to the central government, its majority shareholder.
"The Committee of Directors for Capital Raising of the Bank...Has accorded its approval to fix the issue price at Rs 269.59 per share of face value of Re 1 each, including a premium of Rs 268.59 per share and accordingly, to issue 21,07,27,400 equity shares...On preferential basis to Government of India, for a consideration of Rs 5,680.99 crore," SBI said in a BSE filing.
Earlier this month, SBI had said it would also take fresh approval to raise up to Rs 15,000 crore through various means, including public offer and overseas issuance of shares.
The funds raised will help the bank meet global risk norms, Basel-III, which will kick in from March 2019.
At 11:58 hours, the stock of SBI was trading down 0.55% or Rs 1.45 at Rs 260.25 on the BSE.
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