State 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.

(Edited by : Ajay Vaishnav)

First Published: Jul 16, 2025 5:48 PM IS

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CNBC TV18 newsbreak confirmed | SBI launches ₹25,000 crore QIP, sets floor price at ₹811.05/share

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