SBI shares inch up to ₹836 on ₹25,000 crore QIP launch

The bank’s Central Board had earlier approved the QIP on May 3, 2025, with shareholders passing a special resolution on June 13, 2025

The shares of State Bank of India were trading at ₹835.95 up by ₹4.25 or 0.51 per cent on the NSE today at 11.40 am.

State Bank of India launched its qualified institutional placement (QIP) on July 16, 2025, to raise ₹25,000 crore at a floor price of ₹811.05 per equity share. The Committee of Directors approved the issue opening and floor price calculation based on SEBI ICDR Regulations pricing formula.

The bank’s Central Board had earlier approved the QIP on May 3, 2025, with shareholders passing a special resolution on June 13, 2025. The issue allows for a discount of up to 5 per cent on the floor price, with the final price to be determined in consultation with book running lead managers.

The capital raising is expected to significantly strengthen SBI’s financial position. The QIP will boost the bank’s Tier-1 ratio to 12.95 per cent, representing an increase of 2.14 percentage points and enhancing capital adequacy for regulatory compliance. Net worth is projected to increase by 5.7 per cent, improving overall financial stability.

However, the equity dilution of 3.5 per cent will marginally reduce existing shareholders’ stake in the bank. Book value per share is expected to rise by 2.1 per cent, providing modest improvement in share value metrics.

Additionally, SBI’s Central Board approved raising ₹20,000 crore through Basel III compliant Additional Tier 1 and Tier 2 bonds for domestic investors during FY26, subject to government approval. The trading window for designated persons remains closed under the bank’s insider trading prevention code.

The strengthened balance sheet will support SBI’s lending capacity and growth initiatives in the upcoming financial year.

Published on July 17, 2025