SBI's Rs 25,000-Crore QIP Likely Next Week

State Bank of India, the country’s largest lender by assets, is preparing to sell as much as 250 billion rupees ($2.9 billion) of shares to institutional investors as soon as next week, according to people familiar with the matter, in what could be the nation’s biggest deal of its kind.

If the qualified institutional placement is fully subscribed, it would mark the biggest QIP ever in India, surpassing Coal India Ltd.’s 225.6 billion rupee sale in 2015, according to data compiled by Bloomberg. The bank’s board approved the sale in May.

The plans haven’t been finalized and are subject to change, according to the people. SBI didn’t immediately respond to Bloomberg queries.

The sale is part of SBI’s broader plans to support loan growth, strengthen its balance sheet and meet regulatory requirements. It’s also the first time since 2017 that the lender, majority owned by the government, tapped the equity market.

SBI has shortlisted six investment banks to manage the transaction, including the Indian arms of Citigroup Inc. and HSBC Holdings Plc, as well as ICICI Securities Ltd., Kotak Investment Banking, Morgan Stanley, and SBI Capital Markets Ltd., Bloomberg News reported earlier.