State Bank of India (SBI) shares ended higher on Wednesday in the wake of its Executive Committee of Central Board (ECCB) according to approval to the bank for acquiring the entire stake held by SBI Capital Markets (SBICAPS) in SBICAP Ventures Limited (SVL) at an estimated cost of ₹708.07 crore.

SBI’s shares closed at ₹590.85 per share, up 0.28 per cent (or ₹1.65) over the previous close on BSE.

The aforementioned acquisition, being done for better governance, is subject to receipt of all regulatory approvals, India’s largest bank said in a regulatory filing. SVL will become a wholly-owned subsidiary of SBI after the acquisition.

SBICAPS is the investment banking subsidiary 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 set up, assist in setting up, provide, and/or participate in providing venture capital, technology funds, or any other funds for seed capital, risk capital foundation, loans etc.

SVL presently manages NEEV Fund I, NEEV II (SVL-SME) Fund, and SWAMIH Investment Fund I (SWAMIH). It is also the investment manager for three Funds of Funds: Self Reliant India Fund, UK India Development Cooperation Fund and Trilateral Development Co-operation Fund.

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

Late last month, SBI’s ECCB had accorded its approval to the Bank for acquiring the entire 20 per cent stake held by SBI Capital Markets (SBICAPS) in SBI Pension Funds Private Limited (SBIPFPL) at an estimated cost of ₹229.52 crore.

SBI currently holds a 60 per cent stake in SBIPFPL, with SBICAPS and SBI Funds Management Limited holding a 20 per cent stake each.

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