In a major fundraising move, State Bank of India (SBI) is likely to launch its ₹25,000-crore Qualified Institutional Placement (QIP) today, according to a report by CNBC-Awaaz. This could become one of the largest QIP issues in recent times by an Indian bank.
Life Insurance Corporation of India (LIC) is expected to participate as the anchor investor with a massive ₹7,000-crore bid, as per the same report.
The pricing of the QIP is expected to be in the range of ₹790–800 per share, offering a potential value opportunity for large institutional investors looking to strengthen their stake in the country’s largest public sector bank.
Investment Banks on Board
To manage this high-profile QIP, SBI has reportedly shortlisted six major investment banks, including:
Citigroup Inc. (India arm)
HSBC Holdings Plc (India arm)
ICICI Securities Ltd.
Kotak Investment Banking
Morgan Stanley
SBI Capital Markets Ltd.
This robust lineup signals the bank’s intent to ensure a smooth and well-managed fundraising process.
What This Means for Investors
If successfully launched and subscribed, this ₹25,000-crore QIP will significantly bolster SBI’s capital base, helping it meet future growth requirements and regulatory norms. LIC’s large commitment as an anchor investor adds a layer of credibility and is likely to boost investor confidence.
This move aligns with SBI’s long-term capital strategy and may attract strong demand from institutional buyers.
While the official confirmation and details from SBI are awaited, market participants are closely watching this development, especially with the estimated pricing range offering limited discount from current market levels.
