State Bank of India’s Mega Rs 25,000 Crore QIP Opens for Subscription
State Bank of India, the nation’s largest lender, has announced the opening of its mega Rs 25,000-crore qualified institutional placement (QIP). The subscription for this significant offering is now available for interested investors.
Details of the QIP
The bank has obtained all necessary regulatory approvals and has set the floor price for the QIP at Rs 811.05 per share. This floor price represents a 2.5% discount compared to the closing price of Rs 830.5 per share on the previous trading day.
State Bank of India aims to offer a discount not exceeding 5% on the floor price. Earlier reports had suggested that the QIP would be launched at a discount ranging from 2% to 3% of the prevailing market price.
Key Players and Objectives
Life Insurance Corporation of India is rumoured to be the primary anchor investor in this offering, with reports indicating active participation from domestic mutual funds as well.
The purpose of this QIP is to fortify State Bank of India’s capital foundation, facilitate robust loan growth, and meet the requisite regulatory standards. The bank aims to achieve a common equity tier-I ratio of 12% and a capital to risk-weighted assets ratio of 15% by March 2027.
Lead Managers and Further Plans
Citigroup, HSBC, ICICI Securities, Kotak Investment Banking, Morgan Stanley, and SBI Capital Markets are the appointed lead managers for this landmark QIP. Additionally, the bank’s board has also sanctioned raising up to Rs 20,000 crore through tier-I and tier-II bonds in the ongoing fiscal year.
In the preceding financial year, State Bank of India successfully raised Rs 10,000 crore each through tier-I and tier-II bonds, along with an additional Rs 30,000 crore via infrastructure bonds.
With these strategic financial moves, State Bank of India aims to enhance its capital structure, fortify its market position, and propel sustainable growth in the foreseeable future.
For more information about State Bank of India’s QIP and its implications, visit the official bank website or consult reliable financial news sources.
