Prime Business AfricaThe State of India is no longer a 5 percent stakeholder in Sterling Financial Holdings Company, the parent company of Sterling Bank, following the financial institution’s share dilution in the second quarter (Q2) of 2025.
Sterling Financial Holdings had conducted a rights issue that resulted in the company listing an additional 6.6 billion shares on the Nigerian Exchange Limited (NGX) to increase its share base from 45.45 billion to 52.11 billion on June 17.
Join our WhatsApp ChannelPrime Business Africa notes that the State of India is one of many shareholders affected by the rights issue, as it diluted their shareholding.
Prior to the share dilution, the State of India held 2.54 billion shares, representing a 5.61 percent stake, in Sterling Financial Holdings, however, after the dilution, the shareholder’s stake dropped to 4.89 percent.
However, despite the dilution of its stake, the value of shares held by the State of India in the financial institution has appreciated by N8.46 billion since the dilution took place, from N12.82 billion on June 17 to N21.28 billion as of August 8.
This was due to the 66 percent growth in the share price of Sterling Financial Holdings, which increased from N5.03 to N8.35 kobo between June 17 to August 8.
Other influential shareholders affected are Afriswiss Asset Management Ltd, which holds 575,80 million shares, representing a 1.27 percent stake before the share dilution, but dropped to a 1.10 percent stake after.
Despite the decrease in percentage of stake, the value of shares held by Afriswiss Asset Management increased from N2,89 billion to N4,80 billion within the same period, indicating an increase of N1.91 billion.
Hyers Capital Ltd, with 515.80 million shares, was also affected as its stake dropped from 1.13 percent to 0.98 percent.
However, the company increased its shares by 60 million, from 515.80 million to 575,80 million, to raise its stake from 0.98 percent to 1.10 percent, to reduce the impact of the dilution on its percentage.
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