State bank of india
The country’s largest bank, State Bank of India (SBI) is the biggest lender according to its assets. SBI is soon preparing to sell shares worth around Rs 25,000 crore (about $ 2.9 billion) to large institutional investors. According to the people associated with this case, this deal can be done only next week and it is considered to be one of the biggest so far.
The largest QIP will be the biggest ever
If this qualified Institutional Placement (QIP) is completely subscribed, then it will be India’s largest QIP ever. This will be larger than the QIP of Rs 22,560 crore in 2015, Coal India Limited. The bank’s board had approved this sale in May itself. However, the scheme has not been finalized yet and may also change. SBI did not immediately answer Bloomberg’s questions.
This stock sales is part of the bank’s large plan to support loan growth, strengthen the balance sheet and meet the regulatory needs. It is also worth noting that this will be the first time after 2017 that this bank owned bank is raising money from equity market.
SBI can deal with them
According to Bloomberg News, SBI has chosen six investment banks to handle the deal. These include Citigroup and HSBC Holdings Indian branches, ICICI Securities, Kotak Investment Banking, Morgan Stanley and SBI Capital Markets Limited.