SBI Finalizes Investment Banks for Record Rs 25,000 Crore QIP Fundraise
- SBI to Raise Rs 25,000 Crore through a Qualified Institutional Placement (QIP), marking its first equity fundraising in eight years.
- Top Global and Domestic Banks Selected, including Citigroup, HSBC, Morgan Stanley, Kotak Investment Banking, and ICICI Securities.
- Record-Breaking QIP Expected, likely to launch in Q2 FY2024–25, aiming to boost SBI’s CET-1 capital.
State Bank of India (SBI) has finalized a group of top investment and merchant banks to manage its upcoming Rs 25,000 crore fundraising through a qualified institutional placement (QIP), marking its first equity share sale in eight years. According to a report by Moneycontrol citing unnamed sources, global banking giants Citigroup, HSBC, and Morgan Stanley, along with domestic players Kotak Investment Banking and ICICI Securities, are among the leading contenders selected for the high-profile mandate.
Sources revealed that the bidding process witnessed heightened interest from international investment bankers, significantly outnumbering domestic participants. "The number of global I-bankers who bid for the QIP far outnumbered the domestic players", said one investment banker.
SBI, the country’s largest public sector lender and a major contributor to India’s total bank credit, aims to strengthen its Common Equity Tier 1 (CET-1) capital base with this QIP. The move follows board approval in May this year and is expected to hit the markets in the second quarter of FY2024–25.
Once completed, this will become the largest QIP-based share sale in Indian history. The last such fundraising by SBI was in June 2017, when it raised Rs 15,000 crore through a QIP.
At 10:00 a.m. today, SBI shares were trading at Rs 797.60, down 0.31 percent.
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