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SBI today said it will buy-back shares worth over Rs 99 crore in its primary dealership subsidiary company SBI DFHI.
"Executive Committee of Central Board in its meeting held on September 27 has accorded final approval for buyback of equity shares held by State Bank of India in SBI DFHI for buy back," SBI said in a regulatory filing.
As per the approval, SBI will buy back 1,911,974 equity shares it held in SBI DFHI for Rs 520 per share aggregating to Rs 99.42 crore.
SBI has the largest shareholding of 72.17 per cent in the company, while 22.32 per cent is owned by nationalised banks and the rest of 5.51 per cent by financial institutions/ private banks.
SBI DFHI was created in 2004 as a result of amalgamation of RBI promoted Discount & Finance House of India (DFHI) and SBI Gilts Ltd (a SBI subsidiary).
The company is engaged into book building process in primary auctions of government securities.
The company said it also actively participates in the domestic interest rate derivatives and equities/equity futures markets.
SBI stock closed 2.89 per cent down at Rs 250.45 on BSE.