State Bank of India announced that it has received INR 20 billion in funding from Government of India.
On October 30, 2013, the company announced that the transaction has been approved by the Central Board of the company. The transaction is subject to the approvals from Reserve Bank of India and Government of India under section 5(2) of the State Bank of India Act.
On December 9, 2013, the company announced that the investor has accorded its approval for the transaction.
On December 12, 2013, the company announced that it will issue 11,218,685 shares at INR 1,782.74 to raise gross proceeds of INR 20,000,000,000 in the transaction. The company will issue shares at premium of INR 1772.74. The price for preferential issue has been arrived at in accordance with the SEBI Regulations, 2009. The issue price has been approved by the Executive Committee of Central Board of the Bank.
On January 2, 2014, State Bank of India closed the transaction. The transaction has been approved by its Executive Committee of the Central Board. The shares issued have a hold period till January 14, 2017.