SBI shares trade higher on plans to pick up 20% more in SBI Pension Funds
- Hot Stocks
admin
- 0
- 4 minutes read
SBI and SBI Funds Management Ltd. will act as the sponsors for SBI Pension Fund.
Shares of State Bank of India climbed 1 percent to Rs 614 in early trade on December 6 after the bank announced its intention to acquire a 20 percent stake in SBI Pension Funds currently held by SBI Capital Markets.
The state-run lender holds a 60 percent stake in SBI Pension Funds. The deal will raise its ownership to 80 percent. The acquisition, valued at Rs 229.52 crore, will result in SBI holding the majority stake, while SBI Funds Management will retain the remaining 20 percent stake in SBI Pension Funds.
Follow our market blog for all the live action
In the regulatory release on December 5, the country’s largest public sector lender confirmed that the RBI and the Pension Fund Regulatory and Development Authority (PFRDA) have approved the planned acquisition. The statement further notes that the proposed transaction is being conducted on an “arm’s length basis” relying on the valuation report provided by Deloitte Touche Tohmatsu India. The proposed transaction is expected to be completed by December 15.
As of October 30, 2023, SBI Pension Funds had assets worth Rs 3.83 lakh crore and a net profit of Rs 35.03 crore.
SBI and SBI Funds Management Ltd will act as the sponsors for SBI Pension Fund. SBI Funds Management Ltd, a joint venture between SBI (62.53 percent) and Amundi (36.73 percent), holds a 20 percent stake in SBI Pension Fund.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.
Get ₹100 cashback on checking your free Credit Score on Moneycontrol. Gain valuable financial insights in just two clicks! Click here
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1233676424-c891b2d7f89446f58b98d3b7d10d2ff3.jpg "Campaign Promises and the Economy")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2076671053-ff0e800c89684fabb96eb46d32650e55.jpg "Why and How Student Loan Creditors Can Garnish Your Money")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-510752465-10cdb9eac0884220ae04232d2950ca87.jpg "This Is the Perfect Place for Your Second Home Abroad—And It Might Not Be Where You Think")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-1567505009-09f8705bfdcd40aaa9797052677728ba.jpg "Using the Coppock Curve to Generate Trade Signals")