State Bank of India (BSE:500112) announced that it intends to conduct a private placement of common shares on preferential basis with existing investor, India (Republic of) for gross proceeds of INR 30,000,000,000 on January 7, 2013. The shares will be issued by March 2013.

On January 19, 2013, the company has received approval from the board of directors to receive INR 30,040,000,000. The company is seeking necessary approvals from Reserve Bank of India and India (Republic of).

On February 23, 2013, the company has received approval from its Executive Committee of Central Board for the deal. The company announced that it will issue 12,988,698 common shares at INR 2,312.78 per share for gross proceeds of INR 30,040,000,960.44.

On March 19, 2013, the company announced that the investor will invest for a 0.73% stake in the company. Following the closing of recapitalization transaction, the investor will hold 62.31% stake in the company.