3 days ago
SBI Group to Sell 1% NSE Stake in Proposed IPO
SBI and its investment banking arm want to sell part of their ownership in the National Stock Exchange.
SBI may sell 0.65%, and SBI Capital Markets may sell 0.35%.
Together, this would amount to about 1% of NSE.
The final sale could be smaller if other NSE shareholders also sell shares.
NSE is planning an IPO worth ₹30,000 crore.
SBI recently reduced its ownership in SBI Mutual Fund with partner Amundi through a ₹9,800-crore public issue.
SBI also expects its home-loan business to grow beyond ₹10 lakh crore soon.
The bank says customers trust its pricing, paperwork, and checks on builders.
It says home loans also support more than 200 industries and India’s economic growth.
SBI plans to sell 0.65% of NSE, while SBI Capital Markets may sell 0.35%.
The proposed SBI Group divestment could be smaller if other NSE shareholders also sell.
SBI owns 3.23% of NSE and SBI Capital Markets owns 4.33%.
SBI expects its home-loan portfolio to exceed ₹10 lakh crore during the current quarter.
SBI holds about 28% of India’s home-loan market through more than 460 processing centres.
- Who
- State Bank of India, SBI Capital Markets, and the National Stock Exchange.
- What
- SBI and SBI Capital Markets plan to sell up to about 1% of their NSE holdings through NSE’s proposed IPO.
- Where
- India’s capital and housing-finance markets.
- When
- The announcement was made ahead of the proposed IPO; SBI expects its home-loan portfolio to cross ₹10 lakh crore during the current quarter.
- Why
- To participate in the planned divestment of NSE shares; the articles do not specify a separate reason for the sale.
Key facts
- Proposed NSE IPO size
- ₹30,000 crore
- SBI proposed sale
- 0.65% stake
- SBI Capital Markets proposed sale
- 0.35% stake
- Current SBI stake in NSE
- 3.23%
- Current SBI Capital Markets stake in NSE
- 4.33%
- SBI home-loan portfolio target
- More than ₹10 lakh crore during the current quarter
- SBI home-loan market share
- About 28%, supported by more than 460 processing centres
Quotes
Setty
SBI representative quoted by PTI
“We should be reaching the ₹10 trillion-mark, hopefully in this quarter itself.”
businesstoday.in
“Home loan as a segment is very important for the economy.”
businesstoday.in
Sources
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