SBI’s record Rs 25,000 crore QIP subscribed 3X – OXBIG NEWS NETWORK-OxBig News Network

MUMBAI: State Bank of India’s Rs 25,000 crore qualified institutional placement (QIP) has been oversubscribed by over three times, with investment bankers expecting bids to touch Rs 1 lakh crore.The Life Insurance Corporation of India and domestic mutual funds such as HDFC Life and ICICI Prudential Life were among the top investors who bid for the shares. Foreign investors included Nomura, Millennium, BlackRock, and British hedge fund Marshall Wace.Bankers said foreign investors view the State Bank of India as a proxy for India. They also noted that this is a rare opportunity to make large investments in a blue-chip stock without disrupting the market.The QIP was officially launched on July 16, 2025, with the floor price set at Rs 811.05 per share—a 2.5% discount to the previous day’s closing price. This marks SBI’s first major equity fundraising via QIP since its Rs 15,000 crore issue in 2017.SBI’s common equity tier 1 (CET1) capital stood at 10.81% as of Mar 31, 2025, among the lowest levels for large public sector banks. The new capital is expected to improve the CET1 ratio by up to 60 basis points, strengthening the bank’s financial position and enabling greater credit growth. The capital infusion is aimed at supporting the bank’s expanding loan book and meeting regulatory norms, as SBI’s assets have crossed the Rs 60 trillion mark.The QIP will also result in a marginal reduction in the government’s ownership, which stood at 57.43%, as shares are sold to institutional investors.SBI has appointed several leading investment banks—Citigroup, HSBC, ICICI Securities, Kotak, Morgan Stanley, and SBI Capital—to manage the transaction, with all firms offering their services without charging fees.