SBI’s Committee of Directors had approved ₹811.05 a equity share as the floor price for the QIP issue of fully paid-up equity shares of face value ₹1 each
| Photo Credit:
RUPAK DE CHOWDHURI
State Bank of India (SBI) has raised ₹25,000 crore via qualified institutions placement (QIP) of equity shares at an issue price of ₹817 per equity shares.
Life Insurance Corporation of India (LIC) invested ₹5,000 crore in the QIP issue.
The QIP issue of about 30.60 crore equity shares of ₹1 each (including a premium of ₹816.00 per equity share) opened on 16th July and closed on 21st July.
The Committee of Directors of India’s largest bank, on Monday approved and finalised the confirmation of allocation note to be sent to the eligible QIBs (qualified institutional buyers).
SBI’s Committee of Directors, at its meeting held on July 16, had approved ₹811.05 a share as the floor price for the QIP issue.
LIC, in its regulatory filing, said post-QIP issuance, its stake in the bank has gone up to 9.49 per cent (from 9.20 per cent).
SBI’s shares on Monday closed at ₹824.20 apiece, up 0.11 per cent over the previous close on BSE.
SBI intends to utilise the net proceeds of the QIP issue towards augmenting its Tier-I capital base to meet future capital requirements to support growth plans and enhance the business.
Basel III norms
In accordance with the Basel III norms, as of March 31, 2025, the bank’s Tier I and total capital adequacy ratios were at 12.11 per cent (11.93 per cent as of March 31, 2024) and 14.25 per cent (14.28 per cent) respectively.
The SBI Act mandates that the Government of India’s shareholding in the bank cannot fall below 51 per cent.
“This requirement could result in restrictions in our equity capital raising efforts as the GoI (Government of India) may not be able to fund any further investments that would allow it simultaneously to maintain its stake at a minimum of 51,” SBI said in the QIP document.
The bank emphasised that in order to meet and sustain increasing levels of growth in capital demand, it will need to accrete its capital base, whether through organic growth or capital market financing schemes.
“If we are unable to grow our capital base in step with demand, our business, financial prospects and profitability may be materially and adversely affected.
“Further, the approval issued by the Department of Financial Services, Ministry of Finance, Government of India to our bank dated June 20, 2025 in relation to the issue, requires us to raise capital in such a way that GoI’s shareholding does not fall below 52 per cent,” the bank said.
As of March 31, 2025, the Government and public shareholding in SBI stood at 57.43 per cent and 42.57 per cent respectively.
Published on July 21, 2025