SBI to raise Rs 99 cr from share buyback by dealership arm

 

State Bank of India (SBI) will tender shares worth over Rs. 99 crore as part of a share buyback programme by its subsidiary SBI DFHI. As per the buyabck offer, SBI will get Rs. 99.42 crore from SBI DFHI. The shares will be tendered at a price of Rs. 520.

SBI DFHI is engaged into book building and primary auctions of government securities. It also participates in the domestic interest rate derivatives and equity futures.

Currently, SBI holds the largest shareholding of 72.17 per cent in the subsidiary. Rest of 22.32 per cent is owned by banks and 5.51 per cent by financial institutions.

SBI DFHI was created in 2004 as a result of amalgamation of RBI promoted Discount & Finance House of India (DFHI) and SBI Gilts Ltd (a SBI subsidiary).