SBI fixes preferential issue price at Rs 295.59/share

SBI on Friday fixed Rs 295.59 per share as price for its forthcoming over Rs 2900-crore preferential issue to government as part of its capital infusion plan this fiscal.

Last month, the government had announced to infuse Rs 2,970 crore into India's biggest bank under its Rs 11,200- crore capital infusion plan for nine large public lenders.

The issue price was fixed at a meeting of Executive Committee of central board of the bank on Friday, SBI said in an exchange filling.

"The committee has accorded its approval to fix the issue price at Rs 295.59 per share of face value of Re 1, including a premium of Rs 294.59 per share."

The issue price is at a 15 per cent premium to Friday's closing price.

The price for preferential issue was arrived at in accordance with the Sebi regulations, the bank added.

The bank will issue 10.04 crore equity shares on a preferential basis to the government worth Rs 2,969.99 crore, it said.

The SBI stock closed 2.21 per cent down at Rs 280.85 on the BSE, whose main index Sensex tanked 427 points.