State Bank of India has raised 8,032 crore by selling shares through Qualified Institutions Placement (QIP) issue.
The country’s largest public sector bank issued 51,320,436 (5.13 crore) equity shares of face value 10 at 1,565 per equity share.
The gross issue size, upon allotment of equity shares, is 8,032 crore, the bank said in a statement. The fund-raising is claimed to be the largest QIP equity issuance till date in India.
The issue will increase the overall capital adequacy ratio of the bank to 12.81 per cent and Tier I capital adequacy ratio to over 9.67 per cent (based on risk weighted assets as on September 30, 2013).
The QIP will result in dilution of the Government of India stake to 58.6 per cent post-transaction.
Earlier on January 2, 2014, the Government of India had infused 2,000 crore into the bank through a preferential allotment.
Arundhati Bhattacharya, Chairman of SBI, said: “The QIP saw participation from a wide range of domestic and international investors. That the offering successfully withstood a challenging global and emerging market backdrop underlines the strength of SBI and investor confidence in its equity story.”
She further said: “After the conclusion of the QIP offering, the bank will meet its target of capital raising for the current year. The fresh inflow will substantially augment our capital adequacy ratio.”
The country’s largest public sector bank issued 51,320,436 (5.13 crore) equity shares of face value 10 at 1,565 per equity share.
The gross issue size, upon allotment of equity shares, is 8,032 crore, the bank said in a statement. The fund-raising is claimed to be the largest QIP equity issuance till date in India.
The issue will increase the overall capital adequacy ratio of the bank to 12.81 per cent and Tier I capital adequacy ratio to over 9.67 per cent (based on risk weighted assets as on September 30, 2013).
The QIP will result in dilution of the Government of India stake to 58.6 per cent post-transaction.
Earlier on January 2, 2014, the Government of India had infused 2,000 crore into the bank through a preferential allotment.
Arundhati Bhattacharya, Chairman of SBI, said: “The QIP saw participation from a wide range of domestic and international investors. That the offering successfully withstood a challenging global and emerging market backdrop underlines the strength of SBI and investor confidence in its equity story.”
She further said: “After the conclusion of the QIP offering, the bank will meet its target of capital raising for the current year. The fresh inflow will substantially augment our capital adequacy ratio.”
Source: Hindi News
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