SBI taps 6 investment banks for Rs 25,000 crore QIP, says report

State Bank of India, India’s largest lender, has reportedly appointed six book running lead managers (BRLMs) for its proposed Rs 25,000 crore qualified institutional placement (QIP), a media report quoting sources suggested. Morgan Stanley, SBI Capital Markets, Citi, Kotak, ICICI Securities and HSBC are said to be the appointed bankers for the issue.

To recall, the SBI board had in its meeting on May 3, along with quarterly results, approved the fundraising plan that was proposed to be raised in one or more tranche in FY26 via QIP or follow-on public offer (FPO). The timing of the QIP will depend on market conditions, sources told CNBC-TV18.

This would be SBI’s first equity fundraising since 2017. The capital raise is aimed at bolstering the bank’s capital base, not for funding growth, the report suggested.

On Thursday, SBI shares were trading 0.64 per cent lower at Rs 795. This is even as the broader market was trading largely higher and the Nifty Bank hit fresh record during the session.

"We have valued SBI at 1.35x Mar-27E ABV + subsidiary value per share of Rs252.3, thus deriving a target price (TP) of Rs 1,013 (Rs 1,010 earlier). We are positive on SBI for the long-term considering the bank’s leadership position in corporate and retail lending (which enables it to choose the best quality credit), ample liquidity on the balance sheet (which should provide stability to its margins), and pristine asset quality. We maintain BUY on SBI," Nirmal Bang Institutional Equities said in a note today.

SBI is among top 5 PSU picks by MOFSL. JM Financial, which recently met over 25 institutional investors in Singapore and Hong Kong during its analyst marketing trip said most of the investors were quite positive on SBI, given the expectation of reducing delta in loan growth compared to peers, benign asset quality trends and NIM decline being already priced in, in its lower valuations. 

As SBI is targeting a Common Equity Tier 1 (CET1) ratio of 12 per cent and a Capital to Risk-weighted Assets Ratio (CRAR) of 15 per cent by March 2027. The proposed QIP is expected to support these objectives, the CNBC TV 18-report suggested.