The State Bank of India's (SBI) mega qualified institutional placement (QIP) of Rs 25,000 crore is set to close today (Monday), following a strong response from institutional investors. According to reports, the QIP has been subscribed to more than four times, indicating high demand for the country's most valuable public sector bank.
Key Highlights
- SBI’s ₹25,000 crore QIP oversubscribed nearly 4x with ₹1 lakh crore in bids, showcasing strong investor confidence.
- Floor price set at ₹811.05, offering a 2.5% discount; funds will boost CET‑1 ratio by ~60 bps.
According to sources, the fresh equity shares offered through this QIP will most likely be listed on Tuesday. The Life Insurance Corporation of India (LIC) is thought to have invested a significant Rs 7,000 crore in the issue.
According to SBI's regulatory filing dated July 16, the floor price was set at Rs 811.05 per share using SEBI's prescribed pricing formula. If fully subscribed, this QIP will be the largest ever share sale in India, exceeding Coal India's Rs 22,560 crore QIP in 2015.
Also Read: SBI Plans to Raise a Record Rs 45,000 Crore via Equity and Debt
The capital raise is expected to improve SBI's common equity tier-I (CET-1) ratio by about 60 basis points. The government currently owns 57.4% of the bank, which is expected to drop to around 55% post-issue.
This is SBI's first QIP since 2017, when the lender raised Rs 15,000 crore by issuing 522 million shares priced at Rs 287.25 each. In addition to the QIP, the SBI board earlier this week approved up to Rs 20,000 crore in additional Tier 1 and Tier 2 bonds that are Basel III compliant.
