SBI raises over Rs 7,000 cr in share sale via QIP

Mumbai: Nation's largest lender State Bank of India has raised over Rs 7,000 crore in a mega share sale programme launched through a qualified institutional placement, largely aided by the LIC.

A source, who refused to be named as the process is not over yet, said the bank has completely met its capital needs for this fiscal as well as the next fiscal, with this issue. [caption id="attachment_1367335" align="alignleft" width="380"] Share sale. Reuters[/caption]

The bank which has the board mandate to raise up to Rs 9,500 crore, also has the option to raise the same in multiple tranches.

On the role of LIC in the bids, the source said the Corporation has put in the maximum bid in the current share sale programme, but noted that LIC has been one of its largest investors.

The QIP was launched yesterday and is one of the largest share sale by the bank in the recent past.

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Though the bank has set the floor price at an upper limit of Rs 1,629.35 and a lower limit of Rs 1565, most of the bids were in the lower limit only.

Today, the SBI counters closed almost flat at Rs 1,519 on the NSE, down 2.5 percent, which is 40 per cent below its 52-week high.

Post-QIP, for which SBI received shareholders' nod earlier this week, government holding in the bank will go down to 58 percent.

Merchant bankers to the issue are SBI Caps, Citi, Deustche, Bank of America Merrill Lynch, HSBC, JP Morgan, and UBS.

PTI