State Bank of India, on Monday, said it had fixed the issue price at Rs.2,312.78 a share for the preferential allotment to the government to raise Rs.3,004 crore as part of the capital infusion plan for this fiscal.
The infusion would enable the bank to support national and international banking operations through its subsidiaries and associates, the bank said in a BSE filing.
“The executive committee of central board of the bank has fixed the issue price at Rs.2,312.78 a share of the face value of Rs.10, including a premium of Rs. 2,302.78 per share, for the preferential allotment of equity shares to the Government of India,” the bank added in the filing to the BSE.
On February 23, the board approved capital infusion to the tune of Rs.3,004 crore into the bank during this fiscal, the filing said.
SBI shares were trading at Rs.2,223, up 1.21 per cent on the BSE.
Last fiscal, the government had infused Rs.7,900 crore in SBI to increase Tier-I capital of the country’s largest bank. Following the infusion in March, 2012, the government holding in SBI rose to 61.58 per cent from 59.4 per cent.
The government approved infusion of Rs.12,517 crore in around 10 state-owned banks by March.
The government had pumped in about Rs.12,000 crore in public sector banks last fiscal, as against Rs.20,117 crore in 2010-11.