State Bank of India (SBI), the largest public sector lender, said Friday the bank will issue over 196 million shares on preferential basis at a price of Rs 274.37 a share to the government. Through this issue, the government will infuse Rs 53.93 billion equity capital in the bank. 

The bank said price for preferential issue has been arrived at in accordance with the SEBI regulations, 2009, taking into consideration the Aug 25, 2015 as the relevant date.

Last month, the government declared that it will infuse Rs 200.88 billion into 13 PSU banks within a month's time.

Shares of the bank declined Rs 7.1, or 3.05%, to trade at Rs 225.50. The total volume of shares traded was 1,857,646 at the BSE (2.13 p.m., Friday).