Sbi Arms All Set To Hit The Market
The subsidiaries of State Bank of India - State Bank of Travancore (SBT), State Bank of Bikaner and Jaipur (SBB&J) and State Bank of Hyderabad (SBH) - are slated to open their maiden public issue for subscription on November 20, December 8 and December 15, 1997 respectively.
The 3 subsidiaries, which filed the offer documents with their respective primary exchanges yesterday, will keep the offer open for subscription for one week.
SBBJ plans to raise Rs 65.94 crore, SBT is planning to raise Rs 69 crore while SBT plans to raise Rs 97.5 crore at the price of Rs 540, Rs 1200 and Rs 600 respectively for each share having a face value of Rs 100. While the post-issue capital of SBBJ and SBT will increase to Rs 50 crore from Rs 35 crore, SBHs capital will move up to Rs 23 crore from Rs 17.5 crore.
Sebi has cleared merchant bankers plea to of providing the market lot of 5 share for all 3 subsidiaries, said a merchant banker to the issue.
Among the 3 , SBH has the lowest P/E ratio which will be 4.95 after the public issue followed by SBBJ at 6.12 and SBH at 7.45. Against the industry P/E ratio of 12.1, the pre-issue P/E ratio of the 3 subsidiaries are 3.71, 4.45 and 5.22 respectively. EPS, based on the financial results for 196-97 on fully diluted capital, will be Rs 88.26 for SBBJ, Rs 242.43 for SBH and Rs 80.48 for SBT.
Pre-issue EPS stands at Rs 121.24, Rs 323 and Rs 115.