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SBI's Historic Investment in NSDL Yields Unprecedented Returns

Strategic Insights

— 2 min read

State Bank of India has made history with its early investment in National Securities Depository Limited (NSDL), which has grown from a modest Rs 1.20 crore to a staggering Rs 7,801.80 crore in just three trading sessions, resulting in an unbelievable return of over 6,50,000 per cent. This monumental gain has catapulted SBI to the top, followed closely by IDBI Bank and The Specified Undertaking of the Unit Trust of India (SUUTI), all of whom made strategic investments in NSDL at a fraction of its current value.

Key Takeaways:

  • SBI's initial investment of Rs 1.20 crore in NSDL has ballooned to Rs 7,801.80 crore, yielding a return of over 6,50,000 per cent.
  • The bank's 3 per cent stake in NSDL, acquired at Rs 2 per share, is now valued at Rs 7,801.80 crore, resulting in a paper profit of Rs 7,800.60 crore.
  • IDBI Bank's 14.99 per cent stake in NSDL, bought at Rs 2 per share for Rs 5.996 crore, is now worth Rs 3,898.80 crore, bringing a profit of Rs 3,892.80 crore.
  • The Specified Undertaking of the Unit Trust of India (SUUTI) purchased 5.12 per cent stake in NSDL for Rs 2.049 crore, which is now valued at Rs 1,332.68 crore, yielding a profit of Rs 1,330.63 crore.
  • SBI's stock market debut on August 8 at Rs 880 per share, 10 per cent above its IPO price of Rs 800, has led to a 62.5 per cent jump in share value to Rs 1,300.30 in just 72 hours.
  • Even those who paid more than SBI's initial investment have made extraordinary gains, with IDBI Bank and SUUTI achieving remarkable returns.

Statistics:

  • Rs 1.20 crore to Rs 7,801.80 crore: SBI's growth in investment value.
  • 6,50,000 per cent: SBI's return on investment.
  • Rs 7,801.80 crore to Rs 7,800.60 crore: SBI's paper profit.
  • 10 per cent: SBI's premium to its IPO price.
  • 62.5 per cent: SBI's jump in share value to Rs 1,300.30 in 72 hours.
  • Rs 5.996 crore: IDBI Bank's initial investment in NSDL.
  • Rs 3,898.80 crore: IDBI Bank's current investment value in NSDL.
  • Rs 3,892.80 crore: IDBI Bank's profit.
  • Rs 2.049 crore: SUUTI's initial investment in NSDL.
  • Rs 1,332.68 crore: SUUTI's current investment value in NSDL.
  • Rs 1,330.63 crore: SUUTI's profit.

Sources:

  • The Northlines, "Mumbai, Aug 10: State Bank of India has hit a historic jackpot with its early investment in National Securities Depository Limited (NSDL)" (no date provided)
  • Contify.com, "State Bank of India (SBI) has made history with its early investment in National Securities Depository Limited (NSDL)" (no date provided)

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