State Bank of India Shortlists Investment Banks for Upcoming QIP

Strategic Insights -

State Bank of India has taken a significant step towards its first equity raise in eight years by shortlisting top investment banks for its planned qualified institutional placement (QIP) of up to Rs 25,000 crore. After a competitive bidding process, global and domestic investment banks have been finalized to manage the fundraise, with Citigroup, HSBC, Morgan Stanley, Kotak Investment Banking, and ICICI Securities at the forefront. This move is part of SBI's strategy to boost its common equity tier 1 (CET-1) capital and establish a record for the largest QIP-based share sale in India.

Key Takeaways:

  • State Bank of India has shortlisted top investment banks, including Citigroup, HSBC, Morgan Stanley, Kotak Investment Banking, and ICICI Securities, for its upcoming QIP of up to Rs 25,000 crore.
  • The bid process attracted strong interest from global firms, outnumbering domestic players, according to investment bankers.
  • The QIP is SBI's first equity raise in eight years and aims to boost CET-1 capital and set a record for the largest QIP-based share sale in India.
  • The public sector banking major will rise Rs 25,000 crore via QIP, its first share sale in eight years.
  • The QIP is expected to hit the Street in the second quarter of the current financial year.
  • SBI raised funds through QIP in June 2017, selling 522 million shares and raising Rs 15,000 crore.
  • Shares of State Bank of India were down 0.31% at 10:00 am today at a trading price of Rs 797.60.

Statistics:

  • Up to Rs 25,000 crore: The planned QIP by State Bank of India.
  • Rs 797.60: Trading price per share of State Bank of India as of 10:00 am on the day of the report.
  • 0.31%: Decline in shares of State Bank of India as of 10:00 am on the day of the report.
  • Rs 15,000 crore: Funds raised by State Bank of India through QIP in June 2017.
  • 522 million shares: Number of shares sold by State Bank of India in its 2017 QIP.
  • Second quarter of the current financial year: Expected time frame for State Bank of India's QIP to hit the Street.

Sources:

  • Moneycontrol - citing sources
  • IE Online Media Services Pvt. Ltd., distributed by Contify.com (original source)