With India’s largest QIP, SBI raises ₹15000 crores

State Bank Of India
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State Bank of India, biggest public sector bank in the country has raised ₹15000 crores via QIP (Qualified Institutional Placement) of its shares. The mentioned fund has been contributed by national and international institutional investors. ET reported the development initially, quoting sources familiar to the development.

The IPO by SBI closed earlier this morning and was supposedly oversubscribed. The estimated demand value of the shares rose to over ₹20,000 crores. LIC, Life Insurance Corporation of India had bid for over 50% of the total offering. With this IPO, SBI has surpassed its own record, which was set up in 2014 when SBI had sold shares worth ₹8000 crores using the same method.

According to the sources, the floor price, which was fixed for the shares before QIP announcement was ₹287.58. In a statement, it had also stated that it might offer a discount of under 5% on the mentioned floor price.

The QIP, which has helped SBI raise ₹15,000 crores, will make sure that the bank has enough funds for the next 2 years. Also, it will increase capital adequacy of SBI to 14.50% from 13.11%.

Before this, the bank had also received ₹7,575 crores from the centre as capital infusion scheme by the BJP government. Currently, 62.22% of the bank is owned by the central government.