SBI rights issue to raise over 16,000 crore is likely to open on February 16-18 and will invite subscription for one month, Finance Ministry sources said.
The Government will subscribe to its over 59 per cent shares on the last day of the issue, the sources said.
When asked whether the current volatility in the stock exchanges would affect the pricing of the issue, the sources said the fluctuation would not impact the offer announced by the bank.
Earlier last month, SBI had priced its rights share at Rs 1,590 per share (face value Rs 10 each). Even after decline in its price in the recent days, SBI share was ruling at over 25 per cent premium over the rights issue price. The scrip was ruling at Rs 2,131.90 in the afternoon trade on BSE, down 1.08 per cent from yesterday's close of Rs 2,155.20.
Under the issue, existing shareholders would get one for every five shares they hold.
The bank will raise Rs 16,736.31 crore by way of the rights issue, which will be made to the government and other existing shareholders, including GDR holders. It will also issue shares to employees under employees stock purchase scheme.
SBI will increase the issued capital from Rs 526.30 crore to Rs 650.00 crore.
Clearing the SBI's rights issue, the Union Cabinet had earlier decided to contribute around Rs 10,000 crore for its 59.73 per cent stake, but this would not come in cash.
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