HOME > BUSINESS > SBI raises Rs 15,000 cr in India’s largest QIP

SBI raises Rs 15,000 cr in India’s largest QIP

State Bank of India said it raised Rs 15,000 cr by selling its shares in a ‘qualified institutional placement’ or QIP, making it the largest such transaction in Indian share market history.

QIP’s usually involve selling shares exclusively to big institutions such as mutual funds, banks and other investment houses and are cheaper and quicker than other competing methods such as follow-on offers.

The QIP was launched on 5th June 2017.

SBI said the book was oversubscribed and demand exceeded Rs 27,000 cr.

“Exceptionally strong demand came from long only FIIs of over Rs 8000cr,” it added.

Overall FII demand was in excess of Rs 11000cr.

“The issue also saw very strong demand from DIIs, amounting to Rs 8500cr, excluding one large DII,” it said, possibly referring to the LIC.

Given the overwhelming response, the issue was priced at the top end at Rs 287.25/ share, SBI added.

26% of the issue has been taken up by long-only foreign investors, 25% by DIIs (excluding one large DII), and 11% by high quality FII hedge funds.

Long-only refers to funds that buy and keep shares for the longer term, instead of using the shares for trading in the short term.

The QIP will result in the issue of approximately 52.21cr new shares at Rs. 287.25, which will lead to a dilution of 6.05%.

Post the issue, the shareholding of the government of India will fall to 57.07%.

Post issue CRAR for the merged entity will be at 13.64%.

“The overwhelming response to the QIP from a diverse cross section of investors highlights the faith reposed in SBI by both domestic and foreign institutional investors. The QIP allocation further enhances the diversity of the shareholder base which will add value to the Bank,” it said.

SBI has recently completed a merger involving half a dozen of its associate banks, increasing its size even more.

“Post the merger with erstwhile associate banks, which coincides with the improving economic environment in India, we believe that the Bank is once again at an inflection point where the positive bias will be significant. We expect to leverage the synergies offered by the merger, while continuing to focus on issues such as corporate credit growth and asset quality, thus leading to improvement in return on equity over the long term,” it said.

Follow ULTRA.news
Demonetization took India forward by 3 years – SBI The demonetization of currency notes late last year has doubled the number of card transactions and helped push India's payment digitisation by three years, State Bank of India said in a note."Even after seven months post demonetization, the transaction value is quite large ...
Minda Corp raises Rs 25 cr via commercial paper Auto ancillary company Minda Corp said it had raised Rs 25 cr by issuing commercial paper.Commercial paper refers to unsecured, short-term promissory notes or debt issued by a company.These paper usually mature in a few weeks or months and are used for working capital an...
SBI clears SB Life IPO, to sell 80 mln shares State Bank of India said it had decided to conduct an initial public offer for some of its shares in its insurance subsidiary SB Life Insurance. BNP Paribas Cardif S.A. would also sell some of its shares in the offer.It said the offer would involve 8 crore shares.No valua...
GMR closes funding for Mopa Airport, Axis Bank underwrites debt GMR Goa International Airports Limited said it closed funding for the upcoming Mopa Airport in Goa, with Axis Bank underwriting the entire debt of Rs 1,330 cr."Having tied up funding for the project, we are working towards starting on ground construction activity post monsoon...
JSW Steel to seek shareholder nod to raise 14,000 cr via debt, equity, FCCBs JSW Steel said it will seek approval from its shareholders to raise thousands of crores of rupees via debt and equity in the upcoming annual general meeting of the company."the Company had obtained the approval of members at the Annual General Meetings held on 26.07.2016 and ...
Are ‘truly free’ demat and trading accounts here in India with Finvasia? Finvasia, a technology-driven online broking start-up, announced that it has rolled out what it claimed was India's first 'truly' free online demat account for investing in stocks and derivatives, including futures.There have been many 'free demat account' providers in the p...
SBI cuts interest rates on bigger home loans State Bank of India, the largest Home Loan Provider in India has reduced interest rates of high value home loans.Home Loans above Rs. 75 lakhs will now be cheaper by one-tenth of a percentage from 15 June, 2017.The revised interest rates will be 8.55% p.a. for salari...
Infosys denies promoter stake sale plans Infosys CEO Vishal SikkaIT services player Infosys again clarified that its promoters had no plans to bring down their stake in the company."Infosys would like clarify reports in the media speculating on plans of stake sale by the promoters," the company said in response...
IREDA to sell 14 cr shares in IPO to help meet India’s renewable targets The central government has okayed the listing of India's premier renewable energy agency, IREDA, via an initial public offer.Part of IREDA co-financed 202.40 MW Wind Power Project in APThe move will help the non-banking finance company "increase its equity base which wil...
RattanIndia Infra open offer soon after Laurel Energetics files bank guarantee Laurel Energetics, one of the six persons who are making an open offer for the shares of RattanIndia Infrastructure Ltd said the acquirers have submitted a bank guarantee of Rs 111.41 cr rupees for conducting the open offer.The bank guarantee was made a precondition for the ...
SBI opens QIP at floor price of Rs 287.58 State Bank of India said its committee of directors for capital raising has decided to start receiving bids a qualified institutional placement of its shares with a floor price of Rs 287.58 per equity share."The Bank may offer a discount of not more than 5% to the Floor Pric...
SBI says free ATM transactions not withdrawn India's largest bank, State Bank of India, denied reports that it had scrapped the facility of providing free ATM transactions.SBI CIRCULARThe bank was responding to media reports that said that all transactions will be chargeable from now on.Under the Reserve Bank o...
Rs 1.7 lakh cr deposited via demonetization may not be withdrawn – SBI Monthly cash withdrawals for all banks | source:SBI ResearchThe Indian banking system is likely to get a permanent liquidity boost of Rs 1.7 lakh cr due to the demonetization of high-denomination bank notes, State Bank of India chief economic adviser said in a note to bank c...
SBI’s new minimum balance rule leaves OBC, UCO and PSB as only ‘free’ banks in Ind... SBI Chairman Arundhati BhattacharyaWith the country's largest bank, State Bank of India, refusing to rollback service charges for customers who do not maintain a minimum balance in their accounts, only Oriental Bank of Commerce, UCO Bank and Punjab & Sind Bank remain as ...
PNB, Corp Bank most aggressive in going after big debtors; SBI, BoB more relaxed Punjab National Bank, the third largest public sector bank in India, and smaller cousin Corporation Bank can teach bigger siblings like State Bank of India and Bank of Baroda a thing or two about going after big loan defaulters, an analysis of Reserve Bank of India data shows. ...
Yes Bank denies billion dollar QIP rumors Yes Bank, one of India's youngest, and fastest-growing banks, said it had no plans to go for a billion-dollar qualified institutional placement of its shares as reported by the media.The bank had tried to do a mega share sale in September last year, but the effort didn't find...
Vodafone merger values Idea at Rs 109.76 per share The merger deal between Idea Cellular and Vodafone India values equity shares of the Aditya Birla Group company at about Rs 109.76 at the time of completion of the merger, 2% below its present trading value.According to the terms of the contract, when the merger of Vodafone I...
Bank of Baroda to raise up to Rs 1,000 cr via bond private placement Bank of Baroda said its board of directors had approved the raising of up to Rs 1,000 cr by selling perpetual bonds.The bonds would be sold via private placement, i.e. without a public auction or book building.The timing and other details will be determined by market cond...
SBI biggest beneficiary of demonetization, HDFC Bank close behind State Bank of India and HDFC Bank were the most successful in attracting and retaining deposits in the wake of demonetization of currency, according to an analysis of their deposits growth so far this financial year.The highest growth was reported by State Bank of India, wh...
18,420 megawatt of thermal power projects face funding difficulties in India A large chunk of under-development coal-based power units have their construction stalled due to the paucity of funds, according to numbers obtained from the power ministry.In total, projects that have a design capacity of 18,420 megawatt, or 18.42 gigawatt, are classified as...
Venture Capital firms seek validation for Modi’s policies in UP election BJP leader Uma Bharti at an election rallyPrivate equity and venture capital firms are largely bullish on India in the context of big economic reforms, but are awaiting the results of the ongoing Uttar Pradesh elections to assess the level of popular support that such polici...
DEMONETIZATION: SBI sees GDP growth fall to 6.1%, miss govt projection of 7% The country's largest bank, State Bank of India, said today that it expects the growth in India's gross domestic product to fall to 6.1% or lower in the current year from 7.9% last year due to the impact of demonetization.It said the projection by government of India's Centra...
PayTM adds support for UPI payments Customers of PayTM, India's largest wallet service can now make payments using the Unified Payments Interface, the government of India's open payments platform.The company has signed up with ICICI Bank be able to receive payments from its customers who are on the UPI platform...
Muthoot Group offers online Will generation facility under tie-up with WillJini The Muthoot Group said its broking and wealth management division, Muthoot Securities Limited, launched iWill -- a service which offers online will writing in just 30 minutes.Muthoot Securities has launched this product in association with WillJini Succession Services Private...
SBI starts accepting UPI payments State Bank of India, India's largest bank, has started accepting UPI payments from customers of other banks.However, outgoing payments are yet to be enabled from an SBI account to other accounts.UPI refers to a new way of making instant payments.Instead of enterin...