SBI’s ₹25,000 Cr QIP Sees 3X Oversubscription, LIC Leads Demand Surge

India’s largest public sector lender, State Bank of India (SBI), has made a powerful comeback to the equity markets with its ₹25,000 crore Qualified Institutional Placement (QIP). Launched on July 16 after market hours, the QIP was oversubscribed three times within a day, reflecting massive investor confidence.

The offer received bids worth ₹75,000 crore, against the offer size of ₹25,000 crore, according to CNBC-Awaaz.

This marks SBI’s first equity fundraising through QIP since 2017, highlighting its strategic move to raise capital at a time when growth and credit demand are surging.

Fundraising to Fuel Loan Growth & Strengthen Balance Sheet

SBI set the QIP floor price at ₹811.05 per share, offering it at a small discount to the last traded price to attract institutional investors. The raised capital is expected to support SBI’s loan growth plans and improve its financial strength in the coming quarters.

This move is aimed at reinforcing SBI’s balance sheet and providing fuel for its lending expansion, especially as the Indian economy continues to recover.

Also Read: Citi Turns Cautious on Indian Markets Amid Rising Valuations

LIC Takes the Lead Among Domestic Investors

The Qualified Institutional Placement drew heavy interest from both domestic institutions and foreign players, with LIC leading the charge, placing bids worth ₹7,000 crore.

Other major domestic fund houses joined in:

• Quant Mutual Fund bid for ₹3,000 crore

• HDFC Pension Fund, ICICI Prudential MF, Motilal Oswal MF, and Birla MF also actively participated

On the foreign institutional side:

• Nomura placed bids worth ₹1,800 crore

• Marshall Wace and Millennium followed with ₹1,500 crore each

This overwhelming response indicates strong institutional confidence in SBI’s growth story and long-term fundamentals.

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