3 days ago
SBI Group Plans 1% NSE Stake Sale in Proposed IPO
State Bank of India and its investment-banking subsidiary own parts of the National Stock Exchange.
They plan to sell some of those shares when NSE launches its proposed IPO.
SBI may sell 0.65% and SBI Capital Markets may sell 0.35%.
Together, this would be about 1% of NSE, although the amount could be lower if other shareholders also sell.
SBI currently owns 3.23% of NSE, and SBI Capital Markets owns 4.33%.
SBI recently reduced its holding in SBI Mutual Fund with partner Amundi during a successful public offering.
SBI also expects its home-loan business to become larger than ₹10 lakh crore this quarter.
The bank said it does not immediately plan to sell stakes in its other subsidiaries.
State Bank of India plans to sell 0.65% of its National Stock Exchange stake through the proposed ₹30,000-crore IPO.
SBI Capital Markets plans to sell another 0.35%, bringing the SBI group’s proposed dilution to about 1%.
The final sale could be smaller if other NSE shareholders also participate in the public offering.
SBI currently owns 3.23% of NSE, while SBI Capital Markets owns 4.33%.
SBI Chairman C S Setty said the bank’s home-loan portfolio could cross ₹10 lakh crore this quarter, while ruling out immediate monetisation plans for other subsidiaries.
- Who
- State Bank of India, SBI Capital Markets, and SBI Chairman C S Setty.
- What
- The SBI group plans to dilute up to 1% of its combined stake in the National Stock Exchange through NSE’s proposed IPO.
- Where
- The stake sale concerns the National Stock Exchange in India.
- When
- Through the proposed ₹30,000-crore IPO; no specific IPO date was provided. Setty said the home-loan portfolio could cross ₹10 lakh crore in the current quarter.
- Why
- The SBI group is participating in the divestment of existing NSE shares through the public offering.
Key facts
- Proposed NSE IPO size
- ₹30,000 crore
- SBI planned dilution
- 0.65% stake
- SBI Capital Markets planned dilution
- 0.35% stake
- Current SBI NSE holding
- 3.23%
- Current SBI Capital Markets NSE holding
- 4.33%
- Potential combined dilution
- About 1%, potentially less if other NSE shareholders participate
- SBI home-loan portfolio target
- More than ₹10 lakh crore during the current quarter
- Recent SBI Mutual Fund offer
- SBI and Amundi together diluted around 10% in a ₹9,800-crore public offer that was subscribed 42 times
Quotes
C.S. Setty
Chairman of State Bank of India
“We are participating in that divestment. We propose to divest 0.65 per cent and 0.35 per cent by SBI Capital Markets because both of us hold the stake. So together, about one percent as a SBI group... it could be less depending on any other shareholders joining”
deccanchronicle.com
thehansindia.com
livemint.com
“We should be reaching the ₹10 trillion-mark, hopefully in this quarter itself”
livemint.com
Sources
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