| Log in
Photo Credit: Mukul Mudgal/VCCircle

State Bank of India launches $2.33 bn share sale

05 June, 2017

Top Indian lender State Bank of India on Monday launched a share sale to institutional investors to raise as much as $2.33 billion, in a bid to shore up its capital base.

The bank is selling new shares in a price range of 275.76 rupees to 287.25 rupees a share in the biggest ever Qualified Institutional Placement (QIP), according to a deal term sheet. The price range is a nil to 4 percent discount to the stock’s closing price of 287.25 rupees on Monday.

SBI’s share sale comes as Indian banks face raising billions of dollars in new capital by March 2019 to meet global Basel III banking rules. Lenders will also need more capital as they make higher provisions for bad loans.

In March, SBI’s board had approved a plan to raise up to 150 billion rupees ($2.33 billion) from capital markets during the current fiscal year that began in April.

SBI last sold shares in January 2014 to raise $1.2 billion.

The share sale will lead to an up to 6.7 percent dilution of existing share capital and an up to 6.3 percent of the post-issue capital, according to the term sheet.

Bank of America Merrill Lynch, Deutsche Bank, IIFL, JM Financial, Kotak Investment Banking and SBI Capital Markets are managing the share sale.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
State-run reinsurer GIC Re’s IPO to raise up to $1.7 bn

State-run reinsurer GIC Re’s IPO to raise up to $1.7 bn

Reuters 2 months ago
State-run reinsurer General Insurance Corp of India’s (GIC Re) initial public...
New India Assurance sets price band for up to $1.5 bn IPO

New India Assurance sets price band for up to $1.5 bn IPO

Reuters 4 weeks ago
New India Assurance Co Ltd is targeting an IPO of up to $1.5 billion, as sources...
SBI Life Insurance to float $1.3 bn IPO next week

SBI Life Insurance to float $1.3 bn IPO next week

Reuters 2 months ago
India’s SBI Life Insurance Co Ltd will launch an initial public offering next...
No Comments

State Bank of India launches $2.33 bn share sale

Powered by WordPress.com VIP