SBI to acquire another 20% stake in SBI Pension Funds for Rs 229.52 crore

State Bank of India (SBI) will acquire an additional 20 per cent stake in SBI Pension Funds, from SBI Caps, for Rs 229.52 crore, taking its stake to 80 per cent.

“SBI has proposed the acquisition of a 20 per cent stake in SBI Pension Funds Private Limited currently held by SBICAPS (a wholly-owned subsidiary of SBI). All regulatory approvals in this regard have been obtained,” SBI said in a filing to the exchanges. The objective of the transaction is better management, SBI said. The acquisition, which will be in cash, will be completed by December 15, 2023.

“The proposed transaction of acquisition is being done on an Arm’s Length basis which is based on the valuation report of M/s Deloitte Touche Tohmatsu India,” SBI said.

At present, SBI has a 60 per cent stake in the pension fund.

SBI and SBI Funds Management Ltd., will be the sponsors of SBI Pension Fund. SBI Funds Management Ltd -- a joint venture of SBI (62.53 per cent) and Amundi (36.73 per cent) – has a 20 per cent stake in SBI PF.

The Reserve Bank of India and the Pension Fund Regulatory and Development Authority (PFRDA), which regulates SBI PF, have accorded their approval, SBI said.

SBI PF was incorporated in December 2007 and has been appointed as the Pension Fund Manager (PFM) to manage the pension corpus under the National Pension System (NPS).

SBI PF has an asset under management of Rs 3.83 trillion as at the end of October 2023.