Investment banks to pitch for mega SBI QIP this week

THE SBI BOARD APPROVED THE PLAN ON MAY 3, MARKING ITS SECOND QIP SINCE FY18

- Sneha Shah & Shayan Ghosh

MUMBAI: State Bank of India (SBI) has invited pitches from investment banks to help it raise ₹25,000 crore through a qualified institutional placement (QIP), two people aware of the matter said. "The investment banks will make their presentations this week," one of the persons cited above said.

The board of India's largest bank had approved the fundraising on 3 May, its second QIP since FY18 when it raised ₹18,000 crore. A QIP is a quicker way than a rights issue or follow-on offer for a listed company to raise capital by selling shares or convertible securities to institutional buyers.

On Friday, SBI shares closed 1.29% higher at ₹795.25, in line with the benchmark Nifty index that closed at 25,112.40. SBI's market capitalisation stood at ₹7.09 trillion, highest among state-run companies.

Queries emailed to SBI remained unanswered.