SBI gets shareholders' nod for Rs 11,500-cr QIP

Dec 31, 2013, 05.41 PM IST

The dilution of the government shareholding will be to the extent of the level approved, it said. The government's holding in the bank will not decline below 58 percent pursuant to the QIP.

Tags  QIP, State Bank of India , SBI, FPO

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SBI gets shareholders' nod for Rs 11,500-cr QIP

The dilution of the government shareholding will be to the extent of the level approved, it said. The government's holding in the bank will not decline below 58 percent pursuant to the QIP.

Like this story, share it with millions of investors on M3

SBI gets shareholders' nod for Rs 11,500-cr QIP

The dilution of the government shareholding will be to the extent of the level approved, it said. The government's holding in the bank will not decline below 58 percent pursuant to the QIP.

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State Bank of India (SBI) has got shareholders' approval for raising up to Rs 11,500 crore by way of Qualified Institutional Placement (QIP) or public offer. "Shareholders have passed special resolution to create offer to issue and allot by way of QIP/FPO or any other mode, as may be approved by the government and RBI, such number of shares of Rs 10 each as decided by the board in their discretion, up to Rs 11,500 crore or such amounts," SBI said in a filing with the BSE.

The dilution of the government shareholding will be to the extent of the level approved, it said. The government's holding in the bank will not decline below 58 percent pursuant to the QIP. At present, it holds 62.31 percent in SBI. Besides, the meeting held yesterday also approved the preferential issue of equity shares of Rs 10 each to the government up to Rs 2,000 crore.

Also Read: NPA menace: Banks must take haircut, says KV Kamath

The bank has fixed an issue price of Rs 1,782.74 per share for a preferential stock allotment to the government as part of the capital infusion plan for this fiscal. The bank will issue 1.12 crore shares on a preferential basis to the government for a consideration of about Rs 2,000 crore, it said. The SBI board had approved the preferential allotment in October.

The additional funds will enable the bank to support national and international banking operations undertaken through its subsidiaries and associates. Last fiscal, the government infused Rs 3,004 crore in the bank.

SBI stock price

On December 31, 2013, State Bank of India closed at Rs 1765.50, up Rs 2.10, or 0.12 percent. The 52-week high of the share was Rs 2550.00 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 179.98 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 9.81. The latest book value of the company is Rs 1445.60 per share. At current value, the price-to-book value of the company is 1.22.

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