The State Bank of India's Rs 25,000 crore qualified institutional placement (QIP) has been oversubscribed by more than three times, with investment bankers expecting bids to reach Rs 1 lakh crore.
The top bidders for the shares included the Life Insurance Corporation of India and domestic mutual funds such as HDFC Life and ICICI Prudential Life. Foreign investors included Nomura, Millennium, BlackRock, and Marshall Wace, a British hedge fund.
Key Highlights
- SBI’s ₹25,000 cr QIP oversubscribed threefold within a day, drawing bids worth ₹75,000 cr.
- Institutional giants like LIC and domestic mutual funds led demand, reinforcing investor confidence.
According to bankers, foreign investors view the State Bank of India as a proxy for India. They also pointed out that this is a unique opportunity to make large investments in a blue-chip stock without disrupting the market.
The QIP was officially launched on July 16, 2025, with a floor price of Rs 811.05 per share, representing a 2.5% discount from the previous day's closing price. This is SBI's first major equity fundraising via QIP since the Rs 15,000 crore issue in 2017.
SBI's common equity tier 1 (CET1) capital stood at 10.81% as of March 31, 2025, one of the lowest levels among large public sector banks. The new capital is expected to boost the CET1 ratio by up to 60 basis points, strengthening the bank's financial position and allowing for increased credit growth. The capital infusion is intended to support the bank's expanding loan book and meet regulatory requirements, as SBI's assets have surpassed Rs 60 trillion.
Also Read: SBI Plans to Raise a Record Rs 45,000 Crore via Equity and Debt
The QIP will also result in a marginal reduction in the government's ownership, which is currently 57.43%, as shares are sold to institutional investors.
SBI has appointed several leading investment banks to manage the transaction, including Citigroup, HSBC, ICICI Securities, Kotak, Morgan Stanley, and SBI Capital, all of which are providing their services without charge.
