State Bank of India's 15.97 million shares in the National Stock Exchange of India Ltd. could fetch about Rs 2,851 crore at the upper end of the IPO's Rs 1,700-1,785 price band, compared with the bank's reported weighted average cost of acquisition of 80 paise per share.
SBI's shares would be worth about Rs 2,715 crore at the lower end of the price band and Rs 2,850.54 crore at the upper end. The RHP shows the bank holding 79.85 million NSE shares, with a WACA of Rs 0.80 a share.
At Rs 1,785, the IPO price is about 2,231 times SBI's reported WACA. This is a comparison of the reported WACA with the IPO price and is not a separately disclosed purchase price for the specific shares being sold.
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Other Sellers
SBI's WACA is among the lowest in the offer. The statutory advertisement shows WACAs ranging from 32 paise a share for New India Assurance to Rs 324.13 for Canada Pension Plan Investment Board among the 10 largest sellers by shares offered.
The potential values are calculated by multiplying the shares offered by Rs 1,785. The actual proceeds will depend on the final offer price.
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Bonus Adjustment
The 80-paise figure is a reported WACA, not a purchase price for each share. NSE's filing says its 4:1 bonus issue of November 2024 was excluded from the acquisition calculation, while WACA figures and pre-bonus acquisition prices were adjusted.
The statutory advertisement records 63.88 million bonus shares allotted to SBI on Nov. 4, 2024, with the acquisition price shown as not applicable.
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SBI Capital Markets
SBI Capital Markets Ltd., an associate of SBI and a book running lead manager to the offer, is separately selling 8.78 million NSE shares. Its reported WACA is 38 paise a share, giving the shares a potential value of about Rs 1,567 crore at Rs 1,785.
The RHP says SBICaps will be involved only in marketing the offer because of restrictions under the applicable SEBI regulations.
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