SBI Kicks Off Mega QIP, Sets Issue Price At 5% Discount To Attract Big Investors
LIC is said to be the biggest anchor investor and domestic mutual funds are also seen bidding in SBI's QIP, sources said.
India's largest lender State Bank of India's mega Rs 25,000-crore qualified institutional placement will open on Wednesday, according to an exchange filing.
The bank has received necessary regulatory approvals and has approved the floor price for the issue at Rs 811.05 apiece. The state-run lender may offer a discount of not more than 5% on the floor price.
On Wednesday, shares of SBI closed at Rs 830.50 apiece on the National Stock Exchange.
Earlier on Wednesday, NDTV Profit had reported that the bank may launch its Rs 25,000-crore QIP at 2–3% discount to the current market price.
Life Insurance Corporation of India is said to be the biggest anchor investor and domestic mutual funds are also seen bidding in SBI's QIP, sources said.
The public sector bank had issued its last QIP at 1% discount. In June 2017, SBI had raised Rs 15,000 crore via QIP at an issue price of Rs 287.25 per share.
This QIP, which may be launched any moment from here, aims to strengthen SBI's capital base, support robust loan growth and meet regulatory requirements.
SBI is aiming a common equity tier-I ratio of 12% and a capital to risk-weighted assets ratio of 15% by March 2027. As of March-end, SBI's CET1 ratio stood at 10.81%, while its CRAR was at 14.25%.
Citigroup, HSBC, ICICI Securities, Kotak Investment Banking, Morgan Stanley, and SBI Capital Markets are the lead managers for this issue.
Separately, the board of the lender also approved raising up to Rs 20,000 crore through tier-I and tier-II bonds in the current financial year.
In the financial year ended March, SBI had raised Rs 10,000 crore each through tier-I and tier-II bonds and Rs 30,000 crore via infrastructure bonds.
