New Delhi, July 16
India’s largest Public Sector Bank, the State Bank of India (SBI), is likely to launch its Rs 25,000 crore Qualified Institutional Placement (QIP) very soon, according to multiple reports.
The pricing of this Qualified Institutional Placement is expected to be close to the current market price, with a possible discount of up to 2–3 per cent.
At present, the SBI's shares are trading at Rs 827.80 on the National Stock Exchange, up by Rs 11.35 or 1.39 per cent.
If the bank goes ahead with the expected discount, the Qualified Institutional Placement issue price could be slightly lower than this level.
The Life Insurance Corporation of India is likely to be the biggest anchor investor in this Qualified Institutional Placement.
Along with the Life Insurance Corporation, several domestic mutual funds are also expected to participate in the offer.
This Qualified Institutional Placement will help the SBI strengthen its capital base, support its growing loan book, and meet regulatory capital requirements.