SBI Closes QIP after Raising Rs 150 billion

India’s largest public sector lender, SBI closed its Qualified Institutional Placement (QIP), On June 8, 2017 after raising Rs 150 billion from domestic and foreign institutional investors. The Bank had offered 522.19 million shares to institutional investor with a price band of Rs 275.76-287.25 per share.
 
QIP was opened for subscription on June 5, 2017 and the next day bids worth more than Rs 200 billion were received by the lender. QIP is a capital-raising tool for the listed companies through the issue of securities to qualified institutional buyers. Almost half of the bidding was done by LIC (state owned insurance group).

The approval to raise the funds worth Rs 150 billion from the capital market was received by the SBI on March 15, 2017.  

SBI is trading at Rs 287.10, down by 0.59 per cent on BSE at 11:04 hours on Friday.
 
In January 2014, funds of Rs 80.32 bn were raised by the SBI as it issued shares through the QIP route. Government of India has infused a fund of Rs 75.75 billion in the bank in the 2016-17 sessions.
 
JM Financial, Kotak Institutional Equities, Bank of America Merrill Lynch, Deutsche Bank AG., IIFL and SBI Capital Markets are the SBI book running lead managers to the issue. SBI needs the capital to meet Basel-III requirements under Indradhanush plan.