State Bank of India (SBI), on Thursday, said the executive committee of its central board of directors has approved the divestment of 2.10 crore equity shares, constituting 2.1 per cent of its stake in its subsidiary, SBI Life Insurance Company.
This divestment is to achieve Minimum Public Shareholding (MPS) of 25 per cent (remaining part of the bank’s share for MPS) through offer for sale (OFS) process through stock exchange mechanism as per the regulatory prescription, the bank said in a regulatory filing.
In Q2 (July to September) of FY20, India’s largest bank had raked in a net profit of ₹3,484 crore on sale of ‘certain portion’ of its investment in SBI Life, which is a joint venture between SBI and BNP Paribas Cardif.
On September 11, 2019, SBI had informed the exchanges about “divestment of 3.50 crore +1 crore equity shares, constituting 3.5 per cent with an oversubscription of up to 1 per cent of our stake in SBI Life, to achieve MPS of 25 per cent (part of bank’s share for MPS) through OFS process through stock exchange mechanism as per the regulatory prescription”.
After taking into consideration requests received from listed entities and industry bodies, as well as considering the prevailing business and market conditions, SEBI, on May 14, decided to grant relaxation from the applicability of the October 10, 2017, circular on non-compliance with the MPS requirements.
So, the stipulations of the aforesaid circular have been relaxed for listed entities for whom the deadline to comply with MPS requirements falls between the period from March 1to August 31.
Meanwhile, the executive committee of SBI’s central board, in its meeting held on Thursday, granted its approval “to examine the status and decide on long-term fund raising in single/multiple tranches of up to $1.5 biilion under Reg-S/144A through public offer and/ or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY21”.
Thank you for being a loyal user of Portfolio.
Portfolio will be a paid section hereon.
Please Subscribe to get access to one of our early bird packs.
Or click on Free Trial to get 14 days free trial.
What You'll Get
-
Web + Mobile
Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device.
-
Exclusive Portfolio and Investment Advice, Banking, Lifestyle and Specials
Get diverse set of perspectives from our trusted experts on Portfolio, Banking, Economy, Environment and others.
-
Ad free experience
Experience cleaner site with zero ads and faster load times.
-
Personalised dashboard
Customize your preference and get a personalized recommendation of stories based on your interest.
Published on
June 11, 2020
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.
Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.
In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.
We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.
A little help from you can make a huge difference to the cause of quality journalism!
Support Quality Journalism