State Bank of India (SBI) and its subsidiary SBI Capital Markets Ltd together plan to dilute up to 1 per cent stake in the National Stock Exchange (NSE) through the exchange’s proposed Rs 30,000-crore initial public offering (IPO).
The bank is participating in the NSE IPO and will dilute a 0.65 per cent stake in the exchange, SBI Chairman C S Setty told PTI in an interview.
SBI currently holds a 3.23 per cent stake in the NSE, while SBI Capital Markets owns 4.33 per cent in the country’s largest stock exchange.
“We are participating in that divestment. We propose to divest 0.65 per cent and 0.35 per cent by SBI Capital Markets because both of us hold the stake. So together, about 1 per cent as a SBI group… it could be less depending on any other shareholders joining,” he said.
Shareholding of NSE
Public sector entities and major institutional stakeholders own a substantial portion of the exchange:
- Life Insurance Corporation (LIC): ~10.7%
- Stock Holding Corporation of India Limited (SHCIL): ~4.4%
- SBI Capital Markets (SBI Caps): ~4.3%
- State Bank of India (SBI): ~3.2%
- Public Sector Insurance Companies (New India Assurance, National Insurance, Oriental Insurance): ~1.42% each
Other disinvestments of SBI
Last month, SBI, along with its foreign partner Paris-headquartered Amundi, diluted around 10 per cent stake in SBI Mutual Fund. Post-listing, SBI’s holding declined to 55.46 per cent from 61.76 per cent, while Amundi’s stake reduced to 32.56 per cent, down 3.7 per cent.
In the housing finance segment, Setty said the mortgage portfolio is set to cross an important milestone of Rs 10 lakh crore in the current quarter on the back of robust demand. SBI had surpassed Rs 9 lakh crore home loan portfolio during the last financial year. SBI has a market share of nearly 28 per cent in the home loan segment. SBI has more than 460 home loan processing centres across India, increasing accessibility of its housing finance products.
