SBI launches Rs 25,000 crore share sale via QIP at floor price set at Rs 811.05
State Bank of India (SBI) has launched a Rs 25,000 crore share sale through a qualified institutional placement (QIP). The move follows board approval and comes at a floor price of Rs 811.05 per share.
- Jul 16, 2025,
- Updated Jul 16, 2025 7:05 PM IST
State Bank of India (SBI), the country’s largest lender, on Wednesday launched a major equity fundraising plan, kicking off a qualified institutional placement (QIP) to raise Rs 25,000 crore. This move is part of a broader capital-raising strategy aimed at bolstering its financial strength ahead of future regulatory benchmarks.
The bank’s board approved the QIP of fully paid-up equity shares at a floor price of Rs 811.05 per share — a 2.3% discount to Tuesday’s NSE closing price of Rs 830.50. SBI also said it may offer a discount of up to 5% on the floor price, with the final issue price to be decided in consultation with book-running lead managers.
This QIP is part of a plan already cleared by SBI’s board in May to raise up to Rs 25,000 crore during FY26 through one or more tranches via QIP, follow-on public offers (FPO), or any other permissible instruments.
In a separate filing, SBI announced that its board has also greenlit raising up to Rs 20,000 crore in bonds in FY26. These will be rupee-denominated, Basel III-compliant Additional Tier 1 and Tier 2 bonds, offered to domestic investors. Issuance will be subject to regulatory approvals where necessary.
“The Central Board of the Bank in its meeting held today i.e. 16.07.2025, accorded approval for raising funds in INR by issue of Basel III compliant Additional Tier 1 and Tier 2 Bonds, up to an amount of ₹20,000 crore to domestic investors during FY26, subject to GOI approval wherever required,” the bank stated in its regulatory filing.
SBI clarified that the capital mobilisation is aimed at strengthening its balance sheet, rather than funding short-term growth. The bank is targeting a Common Equity Tier 1 (CET1) ratio of 12% and a Capital to Risk-weighted Assets Ratio (CRAR) of 15% by March 2027, compared to the current CET1 of 10.81% and CRAR of 14.25% as of March 2025.
Following the announcements, SBI shares gained ground, closing 1.72% higher at ₹830.50 on the NSE and 1.81% higher at ₹831.55 on the BSE. The stock is up 5% year-to-date but down 6% over the past year. Over a five-year period, however, the stock has surged 347%, making it a multibagger.
Trading volumes spiked as well, with 12.39 lakh shares traded—well above the two-week average of 3.15 lakh.
State Bank of India (SBI), the country’s largest lender, on Wednesday launched a major equity fundraising plan, kicking off a qualified institutional placement (QIP) to raise Rs 25,000 crore. This move is part of a broader capital-raising strategy aimed at bolstering its financial strength ahead of future regulatory benchmarks.
The bank’s board approved the QIP of fully paid-up equity shares at a floor price of Rs 811.05 per share — a 2.3% discount to Tuesday’s NSE closing price of Rs 830.50. SBI also said it may offer a discount of up to 5% on the floor price, with the final issue price to be decided in consultation with book-running lead managers.
This QIP is part of a plan already cleared by SBI’s board in May to raise up to Rs 25,000 crore during FY26 through one or more tranches via QIP, follow-on public offers (FPO), or any other permissible instruments.
In a separate filing, SBI announced that its board has also greenlit raising up to Rs 20,000 crore in bonds in FY26. These will be rupee-denominated, Basel III-compliant Additional Tier 1 and Tier 2 bonds, offered to domestic investors. Issuance will be subject to regulatory approvals where necessary.
“The Central Board of the Bank in its meeting held today i.e. 16.07.2025, accorded approval for raising funds in INR by issue of Basel III compliant Additional Tier 1 and Tier 2 Bonds, up to an amount of ₹20,000 crore to domestic investors during FY26, subject to GOI approval wherever required,” the bank stated in its regulatory filing.
SBI clarified that the capital mobilisation is aimed at strengthening its balance sheet, rather than funding short-term growth. The bank is targeting a Common Equity Tier 1 (CET1) ratio of 12% and a Capital to Risk-weighted Assets Ratio (CRAR) of 15% by March 2027, compared to the current CET1 of 10.81% and CRAR of 14.25% as of March 2025.
Following the announcements, SBI shares gained ground, closing 1.72% higher at ₹830.50 on the NSE and 1.81% higher at ₹831.55 on the BSE. The stock is up 5% year-to-date but down 6% over the past year. Over a five-year period, however, the stock has surged 347%, making it a multibagger.
Trading volumes spiked as well, with 12.39 lakh shares traded—well above the two-week average of 3.15 lakh.