SocGen to buy 5 per cent stake in Bank of Rajasthan
By Our Banking Bureau | 09 Mar 2005
Singapore: Bank of Rajasthan Ltd. said on Tuesday it was set to sell Societe Generale a five per cent stake for about $10 million, raising the French bank''s exposure to India.
The bank is issuing shares equivalent to a 15 per cent stake to foreign institutional investors or strategic partners worth about 1.3 billion Indian rupees ($30 million).
The 10 per cent cap on voting rights may soon be lifted in India, Asia''s fourth-largest economy.
Shares of Bank of Rajasthan jumped as much as 13.1 per cent after the news on Tuesday afternoon, before easing to be up 6.7 per cent at 71.15 rupees.
SocGen''s interest in the world''s second-most populous country has been growing. It already has bank branches in India and its asset management unit last year announced the purchase of a 37 per cent stake in the fund management arm of State Bank of India.
SG Private Banking is making a push to tap the estimated $580 billion in assets owned by rich Indians living at home and overseas.