LIC ups stake in SBI to 9.49% via QIP route, buys over 6.1 crore shares worth Rs 5,000 crore
ADVERTISEMENT SBI on Monday allotted over 30.59 crore equity shares to institutional investors at an issue price of Rs 817 apiece, the largest Indian lender informed exchanges via a company filing.
Shares of LIC today ended at Rs 928.95 on the NSE, gaining by Rs 5.80 or 0.63% over the Friday closing price while those of SBI ended with minor gains of 0.15% at Rs 824.60.
SBI's record Rs 25,000-crore institutional share sale was bid more than four times the stock on offer, with marquee names such as the $11-trillion asset manager BlackRock Group and London hedge fund Marshall Wace joining in to buy into the mass lender's first such capital-raising in eight years, ET reported on Friday citing people familiar with the bids.Against Rs 25,000 crore of stock SBI offered in India's biggest qualified institutional placement (QIP) to date, the most-valued government asset drew bids worth Rs 1.10 lakh crore from about 120 interested parties. Market sources said aggressive bids came from both local and overseas funds as an SBI share sale - especially of this magnitude - is relatively rare.
ADVERTISEMENT Cyril Amarchand Mangaldas and Linklaters were advisors to SBI on its QIP, which is the largest ever in Indian history. S&R Associates and Allen Overy Shearman Sterling advised the book running lead managers to the deal.The book running lead managers comprise Kotak Mahindra Capital Company, SBI Capital Markets, ICICI Securities, Morgan Stanley India, HSBC Securities and Capital Markets, and Citigroup.
ADVERTISEMENT The QIP was above Coal India's Rs 22,560 crore issue from 2015, making it the largest of its kind on India's bourses.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
(You can now subscribe to our ETMarkets WhatsApp channel)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
9 minutes ago
- Mint
Nifty 50 wipes out last 1-year gains: More downside ahead or a rebound to record highs?
The Indian stock market is under significant selling pressure, with the benchmark Nifty 50 down nearly 1 per cent over the past year on concerns over an elusive India-US trade deal, unimpressive earnings, and sustained foreign capital outflow. While the index is still up about 4 per cent year-to-date, on a monthly scale, it has lost over 3 per cent in July so far, looking set to snap its four-month winning streak. On July 26, the Nifty 50 hit an intraday low of 24,598.60, extending losses to the fourth consecutive session. Meanwhile, the index hit its 52-week low of 21,743.65 on April 7 this year after hitting a record high of 26,277.35 on September 27 last year. After hitting a record high in September, the Nifty plunged due to heavy foreign capital outflow, stretched domestic market valuations, and weak India Inc. earnings. On a monthly scale, the Nifty fell for five consecutive months, from October 2024 to February 2025. The oversold market rebounded in March on valuation comfort, hopes of earnings revival, and healthy macroeconomic indicators. The domestic market remained resilient despite geopolitical conflicts, India-Pakistan tensions, and a trade war led by US President Donald Trump's tariff policies. But now, investors' risk appetite has turned weak amid a lack of fresh triggers, persisting concerns over Trump's tariffs, and weak earnings. "Currently, the market lacks strong triggers from two key perspectives. First, corporate earnings are largely in line with expectations and are therefore not sparking any significant momentum. Second, uncertainty surrounding an India–US trade deal persists, which is weighing on investor sentiment," said Pankaj Pandey, the head of research at ICICI Securities. The domestic market appears to be oversold, so a rebound in the near term is possible. However, sustainable gains are only possible if there is visible earnings growth. The head of research at ICICI Securities is optimistic that the worst may be over and the domestic market will see a healthy rebound in the second half of the year. "We continue to maintain our year-end target for the Nifty at 27,000. If there is no further rate cut, we expect earnings from the banking sector—one of the market's key drivers—to begin improving from Q3 onwards. This will boost the market," said Pandey. The IT sector is likely to remain subdued, while the consumption sector may see some recovery, supported by the festive season and the delayed benefits of income tax exemptions. "Overall, second-half earnings are expected to be stronger. By then, the impact of US tariffs may also start to be felt, potentially triggering relative positivity for emerging markets like India," said Pandey. One of the key reasons behind the Indian stock market's recent downtrend is sustained selling by foreign portfolio investors (FPIs). Experts pointed out that the US market has been resilient despite anticipations of tariff headwinds. This has kept FPIs in a selling mode in India. "In the US, the market is not showing any significant weakness. Contrary to earlier expectations, economic data remains strong. One possible reason is that pre-selling and inventory stocking may have occurred earlier in the cycle, and that inventory is still being consumed. As a result, the anticipated effects of higher inflation and slowing growth have not yet materialised," said Pandey. However, Pandey added that it is unlikely that such steep tariffs will be fully absorbed by the system. "In the second half of the year, as the US Fed has also indicated, inflationary pressures in the US are likely to rise. In that situation, FPIs may come to emerging markets like India," said Pandey. Some experts see another angle behind the FPI selloff. Rohit Srivastava, the founder and market strategist at believes the primary reason behind FPI selling is not short-term but long-term. "It is the introduction of long-term capital gains (LTCG) tax on foreign investors. Since the implementation of LTCG, net FPI inflows into India have declined noticeably. They haven't been major buyers the way they were prior to the tax regime change," Srivastava said. Srivastava said this trend doesn't appear to be linked to any specific year or earnings cycle. "Even when earnings were growing two years ago, FPIs were net sellers throughout the year. This suggests that the reason is not short-term, but structural and long-term in nature. Globally, FPIs tend to invest less in countries that impose withholding taxes. So, even if India remains fundamentally attractive, many funds stay away due to tax-related concerns," said Srivastava. Nevertheless, Srivastava believes the domestic market is oversold and the Nifty 50 may hit the 27,000 mark by the end of the year. "I don't see the Nifty falling below 24,500. The market appears oversold, and a rebound could begin at any time. Our year-end target remains unchanged at 27,000," said Srivastava. "On the downside, 24,500 serves as a strong support level, while on the upside, we see resistance at 24,994," Srivastava said. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Economic Times
9 minutes ago
- Economic Times
Nifty at crucial juncture: What's weighing on the markets?
Markets remain range-bound amid weak earnings, global trade tensions, and lack of sectoral leadership. In this exclusive conversation, Kranthi Bathini breaks down the current market mood, the impact of the India–UK FTA, and why the 25,000 mark on the Nifty is the key level to watch. Excerpts: ADVERTISEMENT Market View Q. Let's start with the markets. Last week was mixed, there was some rally, but overall sentiment remained cautious. What happened? Kranthi Bathini: Markets are still in a consolidation phase. Every time the Nifty moves above the 25,000 mark, it struggles to sustain the momentum beyond 25,750–25,800. There's no strong earnings support or buying interest at those levels. On the downside, 25,000 is acting as a strong support level, both technically and sentimentally. Today, we dipped below it, which typically invites fresh short positions and selling pressure. The lack of earnings triggers, global trade uncertainties, and new EU regulations on Russian oil imports into India have all contributed to the weakness. Also, heavyweight stocks like Reliance Industries are under pressure, it's corrected nearly 10% from its peak, which is dragging the broader market. What's also missing is sectoral leadership rotation. In past rallies, different sectors took turns to lead. That's not happening now. Fortunately, domestic institutional investors (DIIs) have stood strong, if not for them, markets could've dropped the current weakness, history shows that periods of pessimism often offer good accumulation opportunities for long-term investors and delivery-based traders.Q. PM Modi and UK PM Keir Starmer just signed a landmark India–UK Free Trade Agreement. What are the implications? ADVERTISEMENT Kranthi: It's a positive step. FTAs open new markets and show India's maturity to compete globally. Key beneficiaries from this deal are: Textiles Leather manufacturers Gems and jewellery Aquaculture and seafood exports Pharmaceuticals and chemicals We saw selective buying in these segments already, aquaculture and textile stocks moved up. ADVERTISEMENT For instance, Wockhardt, which has a UK plant, surged from ₹300 to ₹1,700, a clear example of how companies with UK exposure can gain from this FTA.Q. With the US threatening 200% tariffs on Indian pharma products, can the UK be a balancing export partner? ADVERTISEMENT Kranthi: The US remains the largest revenue contributor for Indian pharma, about 70–80% of earnings for many firms come from North US tariff hike would significantly impact Indian pharma. However, it's unlikely that the US will act hastily because these are essential, life-saving drugs, and imposing tariffs could backfire on US healthcare said, the UK can't replace the US in terms of volume and scale, but it could open alternative opportunities, especially for companies with a footprint in the UK or EU. ADVERTISEMENT Q. What's the global sentiment looking like, given all the trade-related noise? Kranthi: Right now, uncertainty is rising. While geopolitical tensions have eased slightly, trade worries are intensifying. The US–China trade situation is critical for global markets, it influences global growth and supply chains. Long-only global funds are cautious and staying sidelined due to the unpredictability around tariffs and trade deals. India can gain some share of global manufacturing, but for now, volatility will continue.Q. What's your assessment of the current Q1 earnings season? Kranthi: It's been muted so far. Infosys surprised positively, but TCS disappointed heavily. Reliance Industries didn't live up to expectations due to pressure from refining margins, impacted by EU's Russia policy. Banks have been mixed — Axis Bank disappointed, while ICICI Bank and HDFC Bank delivered solid numbers. Interestingly, mid- and small-caps are showing pockets of strength. But overall, we need more heavy lifting in earnings to drive market momentum.Q. What are the key levels to watch this week? And what's your outlook? Kranthi: The 25,000 mark on the Nifty is absolutely crucial. If Nifty stays above 25,000, we may see a positive breakout toward 25,250. If it falls below 24,800, that could trigger fresh shorting and more downside. So, the expected range for next week is 24,800 to 25,250. If Nifty can hold 25,000, we may see some consolidation or mild upside. Otherwise, selling pressure could persist in the short term. Disclaimer: Recommendations, suggestions, views and opinions given by the experts/brokerages do not represent the views of Economic Times. (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
9 minutes ago
- Mint
Upcoming IPO: Highway Infrastructure IPO opens on August 5, price band set at ₹65-70 apiece; check GMP
Highway Infrastructure IPO price band has been fixed in the range of ₹ 65 to ₹ 70 per equity share of the face value of ₹ 5. The Highway Infrastructure IPO date of subscription is scheduled for Tuesday, August 5 and will close on Thursday, August 7. The allocation to anchor investors for the Highway Infrastructure IPO is scheduled to take place on Monday, August 4. The Highway Infrastructure IPO lot size is 211 equity shares and in multiples of 211 equity shares thereafter. Highway Infrastructure IPO has reserved not more than 30% of the shares in the public issue for qualified institutional buyers (QIB), not less than 30% for non-institutional Institutional Investors (NII), and not less than 40% of the offer is reserved for retail investors. Tentatively, Highway Infrastructure IPO basis of allotment of shares will be finalised on Friday, August 8 and the company will initiate refunds on Monday, August 11 while the shares will be credited to the demat account of allottees on the same day following refund. Highway Infrastructure share price is likely to be listed on BSE and NSE on Tuesday, August 12. Highway Infrastructure IPO consists of a new equity share issuance amounting to ₹ 97.5 crore, alongside an offer-for-sale of 46.4 lakh shares from promoters Arun Kumar Jain and Anoop Agrawal. The company, engaged in infrastructure development and management, operates in toll collection, EPC infrastructure, and real estate sectors. It plans to allocate ₹ 65 crore from the fresh issue proceeds for working capital needs, with the remaining funds designated for general corporate purposes. Pantomath Capital Advisors Pvt Ltd serves as the lead manager for the Highway Infrastructure IPO, while Bigshare Services Pvt Ltd acts as the registrar for the offering. Highway Infrastructure Limited, established in 1995, is an Indian company focused on infrastructure development and management, particularly in toll collection, EPC (Engineering, Procurement, and Construction) projects, and real estate development. The firm is adept at constructing and maintaining roads, highways, bridges, and residential developments. As of May 2025, Highway Infrastructure's combined orderbook was valued at ₹ 666.3 crore, which included ₹ 59.5 crore from the toll collection sector and ₹ 606.8 crore from the EPC infrastructure division. In the last fiscal year, the toll collection sector accounted for 77 percent of the company's revenue, while the EPC infrastructure division contributed 21 percent, with the remaining portion coming from the real estate sector. Highway Infrastructure achieved a profit of ₹ 22.4 crore in fiscal 2025, marking a 4.6 percent increase from the previous year, despite a decline in overall revenue, boosted by other income and operational performance. During the same time frame, revenue decreased by 13.6 percent to ₹ 495.7 crore. As per the red herring prospectus (RHP), the company's listed peers are Udayshivakumar Infra Ltd, IRB Infrastructure Developers Ltd (with a P/E of 44.38) and H.G. Infra Engineering Ltd (with a P/E of 14). Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
