Market Performance
On July 16, the SBI share price saw a slight uptick, trading 0.3% higher at ₹820.40 per share by 9:57 am.
Earlier in the day, the stock also showed a 0.31% increase, touching ₹818.95.
As of 2025, SBI shares have increased by 3% year-to-date.
Main News
State Bank of India, the country's largest public sector lender, is set to roll out a massive ₹25,000 Crore Qualified Institutional Placement (QIP) today, July 16.
This equity fundraising initiative marks SBI's first such move since 2017.
Key Highlights:
- The QIP pricing is expected to be between ₹790 and ₹800 per share
- LIC is expected to be a significant anchor investor
- LIC may submit a bid worth over ₹5,000 Crore, with some reports suggesting a ₹7,000 Crore investment
- Strong interest is also visible from domestic mutual funds
The purpose of the capital raise is to strengthen SBI's capital base rather than fuel business expansion.
Company Details
As of March 2025, SBI reported the following regulatory capital figures:
- Standard Equity Tier 1 (CET1) Ratio: 10.81%
- Capital to Risk-weighted Assets Ratio (CRAR): 14.25%
The bank is working toward achieving:
- CET1 ratio of 12%
- CRAR of 15% by March 2027
To support the transaction, SBI has shortlisted six investment banks, including:
- Citigroup Inc. (India arm)
- HSBC Holdings Plc (India arm)
- ICICI Securities Ltd.
- Kotak Investment Banking
- Morgan Stanley
- SBI Capital Markets Ltd.
Summary of the Article
The launch of SBI's ₹25,000 Crore QIP is a significant financial move, drawing strong interest from large institutional investors like LIC and domestic mutual funds. The offering is expected to be priced attractively and will support SBI's regulatory capital targets.
As a result, the SBI share price reacted positively, gaining around 0.3% intraday, reflecting investor optimism around the QIP. This move also highlights SBI's proactive approach to strengthening its balance sheet, nearly seven years after its last equity raise.
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