Country's largest lender State Bank of India (SBI) plans to offload sell 50 lakh shares representing 1.01 per cent stake in National Stock Exchange (NSE) to raise capital. Currently, SBI holds 5.19 per cent stake in India's oldest exchange. "SBI is one of the shareholders of National Stock Exchange of India Ltd and intends to divest up to 1.0101 per cent (50,00,000 equity shares) of its equity shareholding in NSEIL (National Stock Exchange of lndia Ltd) through a competitive bidding process," the lender said in a public notice.
SBI has invited bids in a minimum lot of 10,00,000 shares and the last date for submission is January 15, 2020. In 2016, SBI sold 5 per cent in NSE to Mauritius-based Veracity Investments for Rs 911 crore. After the transaction, SBI's holding fell to 5.19 per cent while its subsidiary, SBI Capital, holds 4.33 per cent stake in the exchange.
Last month, IFCI sold its entire 2.44 per cent stake in NSE for Rs 805.6 crore.
Apart from raising money from selling stake in NSE, SBI plans to raise funds from initial public offer of its subsidiaries UTI Mutual Fund and SBI Cards and Payment Services Ltd.
India's oldest mutual fund UTI AMC will sell up to 8.25 per cent stake via initial public offer (IPO) route this year as it looks to divest the stake held by its five shareholders.
The public issue consists of an offer for sale by shareholders including State Bank of India, Bank of Baroda, LIC, Punjab National Bank and T Rowe Price. First three shareholders will sell 10,459,949 shares each, while the other two will offload 3,803,617 shares each. UTI AMC's four domestic shareholders LIC, State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) own 18.5 per cent stake each and also have their own AMCs.
SBI Cards and Payments, the credit card unit of State Bank of India filed for an initial public offering (IPO) with SEBI in November last year. The issue size is expected to be around Rs 8,500 crore and Rs 9,500 crore. According to the draft red herring prospectus (DRHP), the offer will comprise fresh issue of equity shares aggregating Rs 500 crore and an offer-for-sale by promoter SBI (3.72 crore equity shares) and by investor CA Rover Holdings (9.32 crore equity shares).
On November 11, SBI in a communication to bourses said the executive committee of its central board of directors accorded final approval for the divestment of up to 4 per cent of the bank's stake in SBI Cards through an IPO, by way of an offer for sale.
Up to 18,64,669 shares have been reserved for SBI employees whereas 1,30,52,680 have been reserved for SBI shareholders.
SBI holds 76 per cent in SBI Cards and rest of the stake is held by Carlyle Group.