State Bank of India (SBI) has unveiled its plan to increase its stake in SBI Pension Funds by acquiring an additional 20% stake from SBI Capital Markets. The move is set to enhance SBI’s ownership in SBI Pension Funds from the existing 60% to 80%.
What Happened: The acquisition is valued at ₹229.52 crore and SBI Funds Management will retain the remaining 20% stake in SBI Pension Funds. SBI’s regulatory release confirmed the approval of the proposed acquisition by the Reserve Bank of India (RBI) and the Pension Fund Regulatory and Development Authority (PFRDA).
As of October 30, SBI Pension Funds boasts an asset under management (AUM) of ₹3.83 lakh crore and a profit after tax (PAT) of ₹35.03 crore. The transaction is deemed to be conducted at an “arm’s length basis” and follows the valuation report by M/s Deloitte Touche Tohmatsu India.
SBI has scheduled the completion of the acquisition for December 15, marking a strategic move to reinforce its presence in the pension fund domain.
Price Action: SBI’s share price was up 0.85% at ₹613.45 at the start of trade on Wednesday.
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