LIC front runner for SBI’s QIP

SBI, India’s largest public sector lender decided not to offer a discount for qualified institutional placement (QIP) of Rs 15,000 crore. QIP is a capital-raising tool for the listed companies through the issue of securities to qualified institutional buyers.
 
State-owned insurance group, LIC has placed orders for almost half of the total issue size i.e. 50 per cent but it is unlikely to get the whole bid amount. Out of the offer about 25 per cent of the shares will be allotted to the Life Insurance Corporation of India, recommended by the Bankers who is managing the deal.
 
State Bank Of India, had offered about 54.4 crore shares to institutional investors.  The price band for the offer is Rs 275.76-287.25 per shares.

Bank of America Merrill Lynch, Deutsche Bank AG., IIFL, JM Financial, Kotak Institutional Equities, and SBI Capital Markets are the SBI book running lead managers to the issue.
 
On June 6, 2017, SBI is trading at Rs 290.40, up by 1.06 per cent on BSE at 10:45 hours. It opened at Rs 291 while it previously closed at Rs 287.35 on Monday.