Image Source : The Financial Express
Capital Boost Amid Market Optimism
State Bank of India has launched a ₹25,000 crore Qualified Institutional Placement (QIP), its first equity raise via this route since 2017. The offering is priced between ₹790–800 per share, slightly below market value to attract institutional interest.
Key highlights:
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Life Insurance Corporation of India is expected to anchor the issue with a ₹7,000 crore bid
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Strong demand is emerging from domestic mutual funds and longterm investors
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The capital infusion will strengthen SBI’s Common Equity Tier 1 ratio, currently at 11%
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Funds will support loan growth, regulatory buffers, and expansion amid falling interest rates
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Six investment banks, including Citigroup, HSBC, and SBI Capital Markets, are managing the transaction
Strategic Outlook
LIC’s participation signals confidence in SBI’s growth trajectory. Analysts expect the QIP to improve valuation metrics and enhance investor sentiment.
Sources: CNBCTV18, Business Upturn, Moneycontrol.
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