SBI Share Price Holds Steady as Rs 25,000 Crore QIP Gets Oversubscribed 3x

Market Performance

State Bank of India (SBI) shares were seen trading with marginal gains at Rs 835.75 apiece on July 17, following the successful launch of a Rs 25,000 Crore Qualified Institutional Placement (QIP).

This QIP marks SBI's first equity fundraising through QIP since 2017. The strong investor response kept the SBI share price stable in the green, despite a slight discount offered on the QIP floor price.

Main News

The Rs 25,000 Crore QIP from India's largest public sector bank was oversubscribed by 3 times, receiving bids worth Rs 75,000 Crore in less than a day. This high demand reflects the growing confidence of both domestic and foreign investors in SBI's long-term growth prospects.

Key Highlights of the QIP

• QIP Size: Rs 25,000 Crore
• Oversubscription: 3x with bids worth Rs 75,000 Crore
• Floor Price: Rs 811.05 per share
• Last QIP by SBI: FY 2017-18, amounting to Rs 15,000 Crore

This fundraising is intended to support loan growth, fortify the balance sheet, and meet regulatory requirements.

Company Details

The QIP was led by Life Insurance Corporation of India (LIC) as the anchor investor. Several mutual funds and foreign institutional investors also showed strong interest.

Domestic Fund Participation

• LIC: Rs 7,000 Crore
• Quant Mutual Fund: Rs 3,000 Crore
• HDFC Pension Fund: Rs 2,000 Crore
• ICICI Prudential MF: Rs 1,500 Crore
• Motilal Oswal MF: Rs 1,500 Crore
• Birla Mutual Fund: Rs 1,500 Crore

Foreign Institutional Investor Bids

• Nomura: Rs 1,800 Crore
• Marshall Wace: Rs 1,500 Crore
• Millennium: Rs 1,500 Crore

In May 2025, SBI had already received board approval to raise to Rs 25,000 Crore through QIP, FPO, or other permitted routes during FY26.

Investment Banks Managing the QIP

• Citigroup India
• HSBC Holdings India
• ICICI Securities
• Kotak Investment Banking
• Morgan Stanley
• SBI Capital Markets

Summary of the Article

• SBI share price remained stable at Rs 835.75 after launching a Rs 25,000 Crore QIP.
• The QIP was oversubscribed 3x, attracting Rs 75,000 Crore worth of bids.
• LIC emerged as the top investor with a bid of Rs 7,000 Crore.
• The QIP marks SBI's first equity fundraising since 2017.
• Participation included significant mutual funds and global FIIs.
• The funds raised are intended to support growth and enhance capital strength.