State Bank of India Raises the Bar with ₹25,000 Crore QIP
State Bank of India (SBI) has launched a qualified institutional placement (QIP) of equity shares. This initiative aims to raise up to ₹25,000 crore. This marks its first equity fundraising since 2017. The issue opened on July 16, 2025.
Key Details:
- Floor Price: ₹811.05 per share, based on SEBI’s pricing formula
- Discount: Up to 2.5% to the company’s closing price of ₹831.70
- Potential Discount: SBI may offer a discount of up to 5% on the floor price
Purpose of the QIP:
The capital raise aims to strengthen SBI’s balance sheet. It targets a Common Equity Tier 1 (CET1) ratio of 12%. Additionally, it aims for a Capital to Risk-weighted Assets Ratio (CRAR) of 15% by March 2027.
Current Ratios:
- CET1 ratio: 10.81% (as of March 2025)
- CRAR: 14.25% (as of March 2025)
Investor Interest:
Life Insurance Corporation of India (LIC) is likely to be a key participant, with a potential bid exceeding ₹5,000 crore. Domestic mutual funds have also shown strong interest.
Additional Fundraising Plans:
SBI’s board approved raising up to ₹20,000 crore through Basel III-compliant Additional Tier 1 and Tier 2 bonds in FY26.
Market Performance:
SBI shares ended 1.8% higher at ₹831.55 on the BSE, with a 3% year-to-date rise. Analysts favor the stock, with 40 out of 50 brokerages maintaining a ‘Buy’ rating
