SBI launches ₹25,000 cr QIP, fixes ₹811.05 as floor price

The SBI Act mandates that the GoI’s shareholding in our Bank cannot fall below 51 per cent

State Bank of India’s Committee of Directors’ has approved ₹811.05 per equity share as the floor price for the bank’s ₹25,000-crore QIP (qualified institutions placement) issue of fully paid-up equity shares of face value of ₹1 each.

At its meeting on Wednesday, the committee also authorised the opening of the QIP Issue on July 16. SBI’s shares on Wednesday closed at ₹831.55 apiece, up 1.81 per cent (or ₹14.80 higher) over the previous close on the BSE.

India’s largest bank said it may offer a discount of not more than 5 per cent on the floor price in terms of SEBI regulations and in accordance with the approval of the shareholders accorded through their resolution passed on June 13.

Subject to compliance with applicable laws, SBI intends to utilise the net proceeds of the QIP issue towards augmenting its Tier-I capital base to meet future capital requirements to support growth plans and enhance the business.

Basel-III norms

In accordance with the Basel-III norms, as of March 31, 2025, the Bank’s Tier I and total capital adequacy ratios were at 12.11 per cent (11.93 per cent as of March 31, 2024) and 14.25 per cent (14.28 per cent), respectively.

The SBI Act mandates that the Government of India’s shareholding in the bank cannot fall below 51 per cent. This requirement could result in restrictions in our equity capital raising efforts as the GoI (Government of India) may not be able to fund any further investments that would allow it to simultaneously maintain its stake at a minimum of 51 per cent.

“As the Indian economy grows, more businesses and individuals will require capital financing,” per the bank’s QIP document.

The bank emphasised that in order to meet and sustain increasing levels of growth in capital demand, it will need to accrete its capital base, whether through organic growth or capital market financing schemes.

“If we are unable to grow our capital base in step with demand, our business, financial prospects and profitability may be materially and adversely affected.

Further, the approval issued by the Department of Financial Services, Ministry of Finance, Government of India, on June 20, in relation to the issue, requires SBI to raise capital in such a way that the GoI’s shareholding does not fall below 52 per cent, it further said.

As of March 31, 2025, the government and public shareholding in SBI stood at 57.43 per cent and 42.57 per cent (includes FPI shareholding of 9.86 per cent), respectively.

Published on July 16, 2025