MUMBAI: Country’s largest lender State Bank of India (SBI) will acquire 100% stake of SBI Capital in SBI Cap Ventures for Rs 708 crore. The Executive Committee of the Central Board (ECCB) of the bank approved the acquisition of the entire stake held by SBI Capital Markets in SBICAP Ventures Ltd (SVL), said the lender.
“The Executive Committee of the Central Board of the Bank has accorded approval for acquiring the entire stake held by SBICAPS in SVL by SBI, subject to receipt of all regulatory approvals,” said SBI in a regulatory filing to the Bombay Stock Exchange (BSE). The acquisition is subject to receipt of all regulatory approvals and is being done for better governance, said the lender.SVL will become a wholly-owned subsidiary of SBI after the acquisition.
SVL was incorporated as a wholly owned subsidiary of SBICAPS on November 10, 2005, with the objective to carry on the business of asset management, and investment management advisors and to set up, assist in setting up, providing, and/or participate in providing venture capital, technology funds or any other funds for seed capital, risk capital foundation, loans, etc.SBICAP Ventures’ asset under management (AUM) stood at Rs 33,054 crore in FY23, compared to Rs 26,811 crore in FY22.