SBM issues IPP to up public stake to 10%

 State Bank of Mysore is opting for a Institutional Placement Programme (IPP) of shares to increase its public shareholding to 10 per cent.

The bank had offered 12,13,630 shares at a face value Rs 10 each by way of an IPP to QIBs on May 31 this year, MD Sharad Sharma said. “This was done to increase public shareholding to 10 per cent from the existing level of 7.67 per cent as mandated by Sebi.”

The floor price was fixed at Rs 545 per share including the premium of Rs 535 per share.  The issue was subscribed 1.22 times.

The bank has since allotted the 12,13,630 shares to the investors and Rs 66.14 crore in capital has been raised. With this issue, SBI’s share holding in the equity of the bank is now at 90 per cent and the public shareholding at 10 per cent.