SBI closes largest QIP ever, raises ₹25,000 crore; key things you need to know

The committee of directors, at its meeting held on Monday, approved the closure of the issue pursuant to the receipt of application forms and the funds in the escrow account from the eligible Qualified Institutional Buyers (QIBs) in accordance with the terms of the issue, the SBI said in a regulatory filing.

The meeting also approved the allocation of 30,59,97,552 equity shares at an issue price of ₹817 per share of a face value of ₹1 each, including a premium of ₹816 apiece, it said.

The panel also finalised the allocation note to be sent to the eligible QIBs, intimating them of the allocation of equity shares pursuant to the issue.

Later, the SBI, in a statement, said the QIP of its equity shares has raised ₹25,000 crore -- the largest QIP ever executed in the capital markets.

• SBI said that the book received a robust demand and was oversubscribed four-and-a-half times, reflecting strong investor confidence in the SBI's strategy and the outlook for India's banking sector.

• Foreign investors accounted for 64.3% of total demand, underscoring the attractiveness of India's growth story, it said, adding that marquee long-term investors received 88% of the final allocation, including 24% of the issue size placed with foreign long-term investors.

• SBI Chairman C S Setty said "this landmark equity raise is a vote of confidence in SBI's solid fundamentals, prudent risk management and digital-first growth agenda. We are grateful to both domestic and international investors for their overwhelming support, which also speaks volumes about the current strength and future potential of the Indian economy."

• The capital will augment the SBI's CET-1 buffer (it will improve to 11.5% from 10.81% as on March 31) and support calibrated credit growth across the retail, MSME and corporate segments, it added.

• In a separate filing, the Life Insurance Corporation of India (LIC) said it has increased shareholding in the SBI's equity shares from 81,46,59,869 to 87,58,59,380, that is, 9.21% to 9.49% of the paid-up capital of the bank.

This was done through the QIP, and the shares would be credited on July 23.

• The SBI had last raised ₹15,000 crore in 2017-18 through the QIP route. Besides, the lender announced that it received a board approval to raise up to ₹20,000 crore through additional tier-1 and tier-2 bonds in FY26.