State Bank of India (SBI)'s board on Wednesday approved the lender's proposal to sell 8.25% stake in UTI AMC.
SBI will divest upto 8.25% in UTI AMC through initial public offer (IPO) by way of offer for sale of upto 1,04,59,949 equity shares. The announcement was made after market hours yesterday, 4 December 2019.
UTI Mutual Fund is promoted by the four of the largest public sector financial institutions as sponsors, viz., State Bank of India, Life Insurance Corporation of India, Bank of Baroda and Punjab National Bank with each of them presently holding a 18.24% stake in the paid up capital of UTI AMC.
Shares of SBI was down 1.07% to Rs 338.25. Meanwhile, the S&P BSE Sensex was up 18 points or 0.04% to 40,868.02.
In the past one month, shares of SBI rose 5.96% to its current market price of Rs 338.25, outperforming the Nifty PSU Bank index's 2.04% rise in the same period.
On the technical front, the stock's RSI (relative strength index) stood at 62.765. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was currently trading above its 50-day moving average (DMA) placed at Rs 298.55, as well as above its 200 DMA placed at Rs 309.64.
On a standalone basis, SBI's net profit surged 613.60% to Rs 937.79 crore on 12% rise in total income to Rs 76,335.08 crore in Q2 September 2019 over Q2 September 2018.
SBI provides a range of products and services to personal, commercial enterprises, large corporates, public bodies and institutional customers.
As on 30 September 2019, the Government of India held 57.18% stake in the bank.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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