State Bank of India on Tuesday announced that it has got the approval of the executive committee of its central board to acquire a 100% stake held by SBI Capital Markets in SBICAP Ventures.
The lender said the cost of the acquisition is Rs 708 crore.
"...executive committee of the central board of the bank has accorded final approval for acquiring 100 per cent stake held by SBI Capital Markets Ltd in SBICAP Ventures Ltd by State Bank of India," the country's largest lender said in a regulatory filing.
The bank said that SBICAP Ventures is engaged in the business of asset and investment management having assets under management to the tune of Rs 33,055 crore as of December 2023.
The stake acquisition from SBI Capital Markets is for better governance, the lender said.
The proposed transaction of acquisition is being done on an arm's length basis.
The RBI and SEBI have also accorded their approvals, the lender said.
According to the regulatory filing, the acquisition will be completed by Feb 25, 2024.
In the third quarter of the current fiscal, SBICAP Ventures posted a net profit of Rs 42.06 crore.
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