SBI shares up on proposal to acquire 100% stake in SBICAP Venture for ₹708 cr

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Central Bank of India Shares of SBI closed higher on Wednesday following the Executive Committee meeting of the Central Board of Directors (ECCB) according to which the Bank approved the acquisition of the entire stake owned by SBI Capital Markets (SBICAPS) in SBICAP Ventures Limited (SVL) at an estimated cost of ₹708.07 crore. .

Shares of SBI closed at INR 590.85 per share, up 0.28 percent (or INR 1.65) over the previous close on the Bahrain Bourse.

India’s largest bank said in a regulatory filing that the aforementioned acquisition, which is being made for better management, is subject to receipt of all regulatory approvals. SVL will become a wholly owned subsidiary of SBI following the acquisition.

SBICAPS is the investment banking firm of SBI.

SVL was incorporated as a wholly owned subsidiary of SBICAPS in 2005 to carry on the business of asset management and investment management advisors and to create, provide and/or participate in the provision of venture capital, technology funds, or any other seed money, venture capital institution, loans, etc.

SVL currently manages the NEEV I and NEEV II Fund (SVL-SME) and the Swami Investment Fund I (SWAMIH). He is also the investment manager for three of the funds: the India Self Reliance Fund, the UK India Development Cooperation Fund and the Triangular Development Cooperation Fund.

In FY23, the subsidiary of SBICAPS reported a net profit of Rs.62 crore and had assets under management of Rs.33,054 crore.

late last month, The SBI’s European Central Bank (ECCB) has given its approval to the bank to acquire the entire 20 percent stake. Held by SBI Capital Markets (SBICAPS) at SBI Pension Funds Private Limited (SBIPFPL) at an estimated cost of Rs.229.52 crore.

The SBI currently holds a 60 per cent stake in SBIPFPL, while SBICAPS and SBI Funds Management Limited each hold a 20 per cent stake.