SBI's Strategic QIP: Raising Billions with Institutional Share Placement

State Bank of India initiated a Qualified Institutional Placement of shares, setting a floor price at Rs 811.05. The bank plans to raise up to Rs 25,000 crore as part of a USD 3 billion fundraising strategy, which has secured board and shareholder approval.

The State Bank of India (SBI) has initiated its Qualified Institutional Placement (QIP) of shares with a floor price fixed at Rs 811.05 per share. This strategic move is part of the bank's larger goal to raise up to Rs 25,000 crore, equivalent to about USD 3 billion, in the current fiscal year.

The decision to embark on this fundraising journey through either public offer or private placement had garnered approval from both the board and the shareholders earlier this year, in May and June respectively. On Wednesday, SBI's Committee of Directors granted the nod to kickstart the QIP process, setting the floor price slightly lower than the previous day's closing on the BSE.

Investors showed a positive reaction as SBI shares closed at Rs 831.55, marking a 1.81 percent rise. In addition to this, SBI disclosed plans to raise up to Rs 20,000 crore through bond issuances aimed at domestic investors within the same fiscal year.

(With inputs from agencies.)