State Bank of India’s Rs 25,000-crore qualified institutional placement (QIP) has got significant interest from global and domestic investors. The country’s largest QIP has received bids worth around Rs 1 lakh crore — four times the shares on offer — people in the know said.
“SBI’s QIP highlights the immense appetite for India and high-quality paper,” said a banker. According to sources, the book was already built, and bankers would not have launched the issue without confidence in the QIP being fully subscribed.
SBI QIP Allotment
Allotment is expected to be completed in the next 2-3 working days. Global institutions such as GIC and Capital International, and domestic institutions such as Life Insurance Corporation, SBI Mutual Fund, Kotak Mutual Fund, and ICICI Mutual Fund are said to have shown interest in the QIP.
SBI’s QIP sets a new record as India’s largest-ever, surpassing Coal India’s 2015 share sale of Rs 22,560 crore. Launched on July 16 at a floor price of Rs 811.05 per share, this marks SBI’s first equity raise since 2017, when it issued Rs 15,000 crore. While SBI has capped the maximum discount at 5%, allowing shares to be issued as low as Rs 770.49 per share, depending on market movement during the offer period, no one expects it to be issued below the offer price. On Thursday, SBI’s stock closed 0.35% lower at Rs 828.60 per share on the BSE.
At the offer price of Rs 811.05, approximately 308.2 million new shares will be issued to institutional investors. This will result in the government’s stake falling from 56.92% (as of March 2025) to 55.02%.
Analyst’s view
Analysts said the bank’s reasonable valuation and encouraging growth prospects were a draw for investors.
Citibank, Morgan Stanley, HSBC Securities, ICICI Securities, Kotak Mahindra Bank and SBI Caps are the investment banks that handled the share sale.