Latest news with #QIBs
Mint
2 days ago
- Business
- Mint
SBI share price in focus as PSU bank raises ₹25,000 crore via QIP; LIC increases stake
SBI share price will be in focus on Tuesday after the PSU lender raised ₹ 25,000 crore through Qualified Institutional Placement (QIP) to fund business growth. The committee of directors of State Bank of India (SBI), at its meeting held on Monday, approved the closure of the issue pursuant to the receipt of application forms and the funds in the escrow account from the eligible Qualified Institutional Buyers (QIBs) in accordance with the terms of the issue, the SBI said in a regulatory filing. SBI approved the allocation of 30,59,97,552 equity shares at an issue price of ₹ 817 per share of a face value of Re 1 each, including a premium of ₹ 816 apiece, it said. SBI QIP was oversubscribed four-and-a-half times, and foreign investors accounted for 64.3% of total demand. The PSU bank said marquee long-term investors received 88% of the final allocation, including 24% of the issue size placed with foreign long-term investors. The capital will augment the SBI's CET-1 buffer (it will improve to 11.5% from 10.81% as on March 31) and support calibrated credit growth across the retail, MSME and corporate segments, it added. Life Insurance Corporation of India (LIC), the state-run insurance giant, has increased its shareholding in SBI by investing in the QIP. The insurance giant was allotted 6,11,99,511 SBI shares in the QIP. Thus, LIC's stake in SBI has been increased from 81,46,59,869 equity shares to 87,58,59,380 shares, that is, 9.21% to 9.49% of the paid-up capital of the bank. Other prominent investors in SBI QIP were HDFC Life Instance Company, Quant Mutual Fund and Societe General. SBI share price has gained 3% over the past month and rallied 9% in the last six months. On a year-to-date (YTD) basis, the PSU bank's stock is up 4%, although it has declined 7% over the past one year. However, over the long term, SBI share price has delivered robust returns, with the stock surging 324% over the past five years, marking a multibagger performance. On Monday, SBI share price ended 0.11% higher at ₹ 824.20 apiece on the BSE.
Indian Express
2 days ago
- Business
- Indian Express
SBI QIP update: How much money did India's largest lender raise and where will be the funds be used
The country's biggest lender State Bank of India (SBI) has raised Rs 25,000 crore through qualified institutional placement (QIP) route. The issue is the biggest share sale to institutional investors in the country's capital market. The fund raised will boost the bank's common equity tier 1 (CET1) capital ratio – the core equity capital, which indicates a bank's financial strength. It will enable the bank to further extend credit to various key sectors such as retail and corporate. What is a qualified institutional placement? QIP is one of the capital raising instruments used by listed companies to garner funds by issuing equity shares to qualified institutional buyers (QIBs), including venture capital funds, pension funds and mutual funds. Through a QIP, a listed issuer issues eligible securities to QIBs on a private placement basis. It also includes an offer for sale of specified securities by the promoters and/or promoter group on a private placement basis. QIBs are sophisticated investors and possess the expertise and resources to take an informed investment decision independently. These investors are generally well-versed with the issuer's business operations, financials and industry positions. How much capital has SBI raised through its QIP? In May this year, the bank had received board approval to raise equity capital aggregating up to Rs 25,000 crore in one or more tranches during FY26 through QIP/ follow-on public offer (FPO) or any other permitted mode. The lender, which opened its QIP for subscription on July 16, managed to raise Rs 25,000 crore in one tranche. This QIP was the biggest issue in the domestic capital markets, surpassing Coal India's Rs 22,560 crore QIP launched in 2015. It was also for the first time since 2017 that SBI mobilised funds through equity sale. The bank had raised Rs 15,000 crore in June 2017. What was the floor price of the QIP? The SBI QIP floor price had been set at Rs 811.05 per equity share, a 2.5 per cent discount over the July 16 (when the issue was launched) closing price of the bank's share price at Rs 831.55 apiece. The bank on Monday (July 21) said the shares in the QIP were priced at a premium to floor price of Rs 811.05 per share. The floor price of the securities is determined based on Sebi regulations. It is calculated as the average of the closing prices of a company's shares over the preceding two weeks from a relevant date. How did investors respond to SBI's QIP? SBI said the QIP received robust demand and was oversubscribed 4.5 times, reflecting strong investor confidence in its strategy and the outlook for the country's banking sector. Foreign investors accounted for 64.3 per cent of total demand, underscoring the attractiveness of the country's growth story. Marquee long-term investors received nearly 88 per cent of the final allocation, including 24 per cent of the issue size placed with foreign long-term investors. How will the fund raise benefit SBI? The capital raised through the QIP will augment SBI's core equity capital – common equity tier 1 (CET1) capital ratio to 11.5 per cent from 10.81 per cent as on March 31, 2025. Capital equity tier 1 is defined as a bank's core equity capital as a percentage of risk-weighted assets. It shows a bank's solvency or its ability to absorb losses immediately. It is an indicator of a bank's financial strength. Improvement in CET 1 ratio shows accretion of high-quality capital by banks. The bank said the funds mobilised through the QIP will support a calibrated credit growth across retail, micro, small & medium enterprises (MSME) and corporate segments.
Mint
2 days ago
- Business
- Mint
SBI share price in focus as PSU bank raises ₹25,000 crore via QIP; LIC increases stake
SBI share price will be in focus on Tuesday after the PSU lender raised ₹ 25,000 crore through Qualified Institutional Placement (QIP) to fund business growth. The committee of directors of State Bank of India (SBI), at its meeting held on Monday, approved the closure of the issue pursuant to the receipt of application forms and the funds in the escrow account from the eligible Qualified Institutional Buyers (QIBs) in accordance with the terms of the issue, the SBI said in a regulatory filing. SBI approved the allocation of 30,59,97,552 equity shares at an issue price of ₹ 817 per share of a face value of Re 1 each, including a premium of ₹ 816 apiece, it said. SBI QIP was oversubscribed four-and-a-half times, and foreign investors accounted for 64.3% of total demand. The PSU bank said marquee long-term investors received 88% of the final allocation, including 24% of the issue size placed with foreign long-term investors. The capital will augment the SBI's CET-1 buffer (it will improve to 11.5% from 10.81% as on March 31) and support calibrated credit growth across the retail, MSME and corporate segments, it added. Life Insurance Corporation of India (LIC), the state-run insurance giant, has increased its shareholding in SBI by investing in the QIP. The insurance giant was allotted 6,11,99,511 SBI shares in the QIP. Thus, LIC's stake in SBI has been increased from 81,46,59,869 equity shares to 87,58,59,380 shares, that is, 9.21% to 9.49% of the paid-up capital of the bank. Other prominent investors in SBI QIP were HDFC Life Instance Company, Quant Mutual Fund and Societe General. SBI share price has gained 3% over the past month and rallied 9% in the last six months. On a year-to-date (YTD) basis, the PSU bank's stock is up 4%, although it has declined 7% over the past one year. However, over the long term, SBI share price has delivered robust returns, with the stock surging 324% over the past five years, marking a multibagger performance. On Monday, SBI share price ended 0.11% higher at ₹ 824.20 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
News18
2 days ago
- Business
- News18
SBI Shares In Focus After Massive Rs 25,000 Crore QIP; LIC Among Major Investors
Last Updated: SBI share price will be in focus on Tuesday after the state-run lender raised Rs 25,000 crore through QIP SBI Share Price Today: SBI share price will be in focus on Tuesday after the state-run lender raised Rs 25,000 crore through a Qualified Institutional Placement (QIP) to support business expansion. The Committee of Directors of State Bank of India (SBI), in its meeting held on Monday, approved the closure of the QIP issue after receiving application forms and funds in the escrow account from eligible Qualified Institutional Buyers (QIBs), according to a regulatory filing. As per the filing, SBI approved the allocation of 30,59,97,552 equity shares at an issue price of Rs 817 per share (face value of Re 1 and a premium of Rs 816 per share). The QIP was oversubscribed by 4.5 times, with foreign investors accounting for 64.3% of the total demand. SBI said that 88% of the final allocation went to marquee long-term investors, including 24% to foreign long-term players. The raised capital will help bolster SBI's Common Equity Tier-1 (CET-1) capital ratio, which is expected to rise from 10.81% (as of March 31) to 11.5%. This will support calibrated credit growth across retail, MSME, and corporate segments, the bank added. As a result, LIC's shareholding in SBI rose from 81,46,59,869 shares to 87,58,59,380 shares, translating to an increase from 9.21% to 9.49% of the bank's paid-up capital. Other key investors in the QIP included HDFC Life Insurance, Quant Mutual Fund, and Societe Generale. SBI Share Price Performance SBI share price has risen 3% over the past month and 9% over the last six months. On a year-to-date (YTD) basis, the stock is up 4%, although it is down 7% over the past one year. However, over the long term, SBI has delivered strong returns — the stock has surged 324% in the past five years, delivering a multibagger performance. On Monday, SBI share price closed 0.11% higher at Rs 824.20 apiece on the BSE. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
2 days ago
- Business
- News18
SBI raises Rs 25,000 Cr via share sale, to use proceeds for loan growth
New Delhi, Jul 21 (PTI) The State Bank of India (SBI) said on Monday that it has raised Rs 25,000 crore through Qualified Institutional Placement (QIP) to fund business growth. The committee of directors, at its meeting held on Monday, approved the closure of the issue pursuant to the receipt of application forms and the funds in the escrow account from the eligible Qualified Institutional Buyers (QIBs) in accordance with the terms of the issue, the SBI said in a regulatory filing. The meeting also approved the allocation of 30,59,97,552 equity shares at an issue price of Rs 817 per share of a face value of Re 1 each, including a premium of Rs 816 apiece, it said. The panel also finalised the allocation note to be sent to the eligible QIBs, intimating them of the allocation of equity shares pursuant to the issue. Later, the SBI in a statement said the QIP of its equity shares has raised Rs 25,000 crore — the largest QIP ever executed in the capital markets. The book received a robust demand and was oversubscribed four-and-a-half times, reflecting strong investor confidence in the SBI's strategy and the outlook for India's banking sector, it said. Foreign investors accounted for 64.3 per cent of total demand, underscoring the attractiveness of India's growth story, it said, adding that marquee long-term investors received 88 per cent of the final allocation, including 24 per cent of the issue size placed with foreign long-term investors. SBI Chairman C S Setty said 'this landmark equity raise is a vote of confidence in SBI's solid fundamentals, prudent risk management and digital-first growth agenda. We are grateful to both domestic and international investors for their overwhelming support, which also speaks volumes about the current strength and future potential of the Indian economy." The capital will augment the SBI's CET-1 buffer (it will improve to 11.5 per cent from 10.81 per cent as on March 31) and support calibrated credit growth across the retail, MSME and corporate segments, it added. In a separate filing, the Life Insurance Corporation of India (LIC) said it has increased shareholding in the SBI's equity shares from 81,46,59,869 to 87,58,59,380, that is, 9.21 per cent to 9.49 per cent of the paid-up capital of the bank. This was done through the QIP and the shares would be credited on July 23. The fundraising of up to USD 3 billion (about Rs 25,000 crore) through private placement in FY26 was approved by the SBI's central board in May. Thereafter, the shareholders cleared the same in June. The SBI had last raised Rs 15,000 crore in 2017-18 through the QIP route. Besides, the lender announced that it received a board approval to raise up to Rs 20,000 crore through additional tier-1 and tier-2 bonds in FY26. For the entire 2024-25 financial year, the SBI reported a 16-per cent increase in standalone profit to Rs 70,901 crore against Rs 61,077 crore in the previous year. The bank's board has declared a dividend of Rs 15.9 per equity share for FY25. PTI DP RC (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: July 22, 2025, 00:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
