CNBC TV18 newsbreak confirmed | SBI launches ₹25,000 crore QIP, sets floor price at ₹811.05/share
Published on 16/07/2025 06:58 PM
CNBC TV18 newsbreak confirmed | SBI launches ₹25,000 crore QIP, sets floor price at ₹811.05/shareThe floor price for the issue has been set at ₹811.05 per share, based on SEBI’s pricing formula, the lender said in an exchange filing. The floor price represents a discount of up 2.5% to the company's closing price of ₹831.70 today. By Poonam Behura July 16, 2025, 6:58:18 PM IST (Updated)2 Min ReadState Bank of India's (SBI) qualified institutional placement (QIP) of equity shares to raise up to ₹25,000 crore, marking its first equity fundraising since 2017, opened on Wednesday, July 16. The floor price for the issue has been set at ₹811.05 per share, based on SEBI’s pricing formula, the lender said in an exchange filing. The floor price represents a discount of up to 3% to the company's closing price of ₹831.70 today.
The issue opened on July 16 after receiving approvals from the bank’s board in May and shareholders in June.
SBI may offer a discount of up to 5% on the floor price, with the final issue price to be determined in consultation with book-running lead managers, the lender stated. The bank filed the preliminary placement document with the stock exchanges on the same day.
Earlier today, CNBC-TV18 reported that Life Insurance Corporation of India (LIC) is likely to be a key participant in the QIP, with a potential bid exceeding ₹5,000 crore. Strong interest is also being seen from domestic mutual funds.
The capital raise is intended to strengthen SBI’s balance sheet rather than fund immediate growth, with the lender targeting a Common Equity Tier 1 (CET1) ratio of 12% and a Capital to Risk-weighted Assets Ratio (CRAR) of 15% by March 2027. As of March 2025, the CET1 ratio stood at 10.81% and CRAR at 14.25%.
In a separate announcement, SBI said its board also approved raising up to ₹20,000 crore through Bael III-compliant Additional Tier 1 and Tier 2 bonds in FY26.
SBI shares are widely favoured by analysts, with 40 out of 50 brokerages covering the stock maintaining a ‘Buy’ rating, nine a ‘Hold’, and one a ‘Sell’, according to CNBC-TV18.
Shares of State Bank of India ended 1.8% higher at ₹831.55 on the BSE. The stock has risen 3% on a year-to-date basis.Continue Reading(Edited by : Ajay Vaishnav)First Published: Jul 16, 2025 5:48 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsqualified institutional placement (QIP)SBIshare market today