SBI scrip surges over expectations of 40,000 cr deal later this yr

Mumbai, June 4 (UNI) The largest public sector unit (PSU) bank, the State Bank of India (SBI) scrip today advanced by 2.02 per cent to Rs 1405.90 on 6.59 lakh shares, after surging to an all time high of Rs 1418.90, in intra-day trade.

Accounting for this surge, market analysts said that the government appears set to promulgate an ordinance to close the largest ever acquisition involving the transfer of Reserve Bank of India's (RBI) 59.7 per cent stake in SBI to the Centre in a deal worth a whopping Rs 40,000 crore.

The government will value the 31.43 crore SBI shares, which have a face value of Rs 100 each, held by RBI at the average closing price for six months, experts explained and added that the finance ministry will seek the Cabinet's approval over the next couple of weeks to ensure that the Centre hands over the cheque to RBI on May 29, a day before RBI closes its annual books of accounts.

UNI