SBI flags off QIP to raise ~11,000 cr
The State Bank of India (SBI), the country’s largest lender, has launched share sales through private placement to raise about ~11,000 crore to shore up its capital adequacy ratio.
This is part of the plan to mop up ~15,000 crore from the markets in the current fiscal year.
In a regulatory filing, the bank said it had opened a “qualified institutional placement” (QIP) of equity shares with a face value of ~1 to qualified institutional buyers.
“The floor price in respect of the issue, based on the pricing formula of Sebi, is ~287.58 per equity share of the bank and the relevant date for this purpose...is June 5, 2017,” the filing said.
It further said the bank might offer a discount of not more than 5 per cent to the floor price. According to sources, the SBI plans to raise ~11,000 crore through this QIP.
In March, the central board of the bank had approved raising equity capital of up to ~15,000 crore during 2017-18.
The board had permitted the bank to raise funds by way of a follow-on public offer (FPO), rights issue, QIP, American Depository Receipts (ADRs), Global Depository Receipts (GDRs), or employee stock options.
The bank's stock closed at ~287.35, down 0.02 per cent, on the BSE.
On a consolidated basis, its deposits stood at ~25,99,811 crore and its net advances were at ~18,96,887 crore at the end of March.