The Executive Committee of Central Board (ECCB) of State Bank of India has decided to make preferential allotment of shares to the Government of India (GoI) to raise up to Rs 3,004 crore.

The ECCB had on February 23 (Saturday) decided to issue the shares at Rs 2,312.78 per share (including a premium of Rs 2,302.78 per share).

In a filing with the stock exchanges, SBI said that the committee has decided to raise the issued capital of the bank through preferential share allotment to support national and international banking operations undertaken through its subsidiaries and associates.

The bank said the price was fixed based on February 15, 2013 as the “relevant date’’. The price selected was a fine balance between the closing price of the stock on Friday and the 52-week high it had touched barely a month back.

SBI stock had closed at Rs 2,196.50 on the BSE on Friday. But the stock had shed about 13 per cent of the value after touching a 52-week high of Rs 2,550 on January 10 on the BSE.

(This article was published on February 25, 2013)
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