State Bank of India (SBI) announced that the Executive Committee of the Central Board (ECCB) has approved its acquisition of the entire stake held by SBI Capital Markets in SBICAP Ventures (SVL). The approval was accorded on July 4, 2023.
SBI had proposed to acquire 6,03,80,000 equity shares or a 100% stake currently held by SBICAPS in SVL. The proposed transaction will be done at an estimated cost of ₹708.07 crore.
On BSE, SBI share price closed at ₹589.20 apiece, up by ₹3.80 or 0.65%. SBI’s market value is nearly ₹5.26 lakh crore.
SBICAPs is a wholly-owned subsidiary.
The proposed acquisition is to be done on an arm’s length basis. The reason behind SBI’s acquisition of SVL is for better governance.
The deal is subject to all regulatory approvals including RBI.
“The acquisition will be completed after receipt of all regulatory approvals,” SBI said.
SVL was incorporated as a wholly owned subsidiary of SBICAPS on November 10, 2005, with the objective to carry on the business of asset management, and investment management advisors and to set up, assist in setting up, providing, and/or participate in providing venture capital, technology funds or any other funds for seed capital, risk capital foundation, loans, etc.
SVL’s asset under management (AUM) stood at ₹33,054 crore in FY23, compared to ₹26,811 crore in FY22.
With effect from July 1, 2023, Kameshwar Rao Kodavanti, has taken over charge of Chief Financial Officer at SBI. He has been working with the State Bank of India since August 1991 and has more than 31 years of experience in Banking. He has a vast experience in the fields of Banking, Forex, and Finance & Accounting.
Last week, on June 28, SBI proposed for acquisition of a 20% stake in SBI Pension Funds (SBIPFPL), currently held by SBICAPS. SBI, the holding company of SBIPFPL currently holds a 60% stake in the company. The transaction is at an estimated cost of ₹229.52 crore.
