State Bank of India Set to Acquire Full Stake in SBICAP Ventures for Rs 708 Crore

SBI to buy SBI Caps' entire stake in SBICAP Ventures for Rs 708 crore.

  • SBI to buy SBI Caps’ entire stake in SBICAP Ventures for Rs 708 crore.
  • SBICAP Ventures manages assets worth Rs 33,055 crore as of December 2023.
  • RBI and SEBI have granted approval for the acquisition.

In a significant move, State Bank of India (SBI) has greenlit the acquisition of SBI Capital Markets’ entire stake in SBICAP Ventures. The deal, valued at Rs 708 crore, marks SBI’s aim for full ownership of SBICAP Ventures, a company specializing in asset and investment management. As per SBI’s regulatory filing on Tuesday, SBICAP Ventures boasts assets under management totaling Rs 33,055 crore as of December 2023.

The acquisition aligns with SBI’s strategic vision for enhanced governance. Both the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) have provided their consent for the transaction. Expected to be finalized by February 25, 2024, the deal is structured to ensure fairness on an arm’s length basis. SBICAP Ventures has reported a net profit of Rs 42.06 crore in the third quarter of the current fiscal year.

This acquisition underscores SBI’s commitment to strengthening its position in the asset management sector, positioning itself for greater growth and market influence.