SBI sets 34:100 share swap ratio for State Bank of Indore merger
29 Mar 2010
State Bank of India (SBI), the country's top lender, will merge its subsidiary State Bank of Indore at a share swap ratio of 34:100, SBI said in filing with the Bombay Stock Exchange (BSE).
SBI, which owns 98 per cent of State Bank of Indore, said its central board, at its meeting on 26 March 2010, approved issuance of maximum 1,16,052 shares, of face value of Rs10 each, to the minority shareholders of State Bank of Indore.
The share issue will result in an increase in the issued capital of the State Bank of India from Rs634.97 crore to a maximum Rs635.08,46 crore, subject to approval of the scheme of acquisition by the government, SBI said.
SBI also said he executive committee of its central board has approved allotment of 2,422 rights shares to eligible shareholders under the `SBI Rights Issue-2008'.
Allotment of the rights shares, however, had to be kept in abeyance because of disputes (sub judice) over the equity shares in respect of which the rights shares were issued, SBI said.
SBI also announced the launch of operations of its subsidiary, SBI General Insurance Company Ltd.
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