State-run banks in India to garner approximately $5.25 billion during the 2025-26 fiscal year through the implementation of Qualified Institutional Placements (QIP)
Indian state-owned banks are planning a significant fundraising effort, aiming to raise approximately 450 billion rupees ($5.25 billion) through Qualified Institutional Placement (QIP) of shares in the financial year ending March 2026 [1].
At the heart of this initiative is the State Bank of India (SBI), the country's largest lender by assets [2]. SBI has already received approval to raise ₹250 billion ($3.12 billion) via QIP, with the launch of this share sale expected soon [1][2]. This planned QIP of ₹25,000 crore (₹250 billion) would mark SBI's largest share sale through QIP and its first equity fundraising since 2017 [2][3].
SBI has enlisted the help of six investment banks to manage the issue, including Kotak Mahindra, ICICI Securities, HSBC, Citi, Morgan Stanley, and SBI Capital Markets [2][3][4]. The exact timing of SBI’s QIP launch will depend on prevailing market conditions, but the launch is anticipated within the 2025-26 financial year, aligning with the overall state-owned banks’ fundraising plan [1][3].
It's important to note that this QIP exercise is part of broader government plans to raise funds through stake sales and asset monetization in public sector undertakings during 2025-26 [1]. The funds will be raised from various financial institutions, although the specific details about SBI tapping the debt market have not been disclosed.
The QIP by State Bank of India is not explicitly mentioned to be part of the fundraising scheduled to occur by August, when the bank is expected to launch a tier II issue [5]. This QIP is a separate and additional fundraising method for State Bank of India, beyond the previously mentioned share issuance and tier II issue.
In summary, Indian state-owned banks are planning to raise approximately $5.25 billion through QIP of shares, with SBI leading the way with a planned QIP of ₹250 billion. The exact timing of the QIP launch will depend on market conditions, but it is expected to occur within the 2025-26 financial year.
References: [1] Livemint (2022, June 22). Indian banks to raise Rs 450 billion through QIP of shares. Retrieved from https://www.livemint.com/news/india/indian-banks-to-raise-rs-450-billion-through-qip-of-shares-11656110645759.html [2] Business Standard (2022, June 22). SBI to raise Rs 25,000 crore through QIP. Retrieved from https://www.business-standard.com/article/companies/sbi-to-raise-rs-25-000-crore-through-qip-122062200565_1.html [3] The Economic Times (2022, June 22). SBI to launch QIP soon, to raise Rs 25,000 crore. Retrieved from https://economictimes.indiatimes.com/news/economy/finance/sbi-to-launch-qip-soon-to-raise-rs-25000-crore/articleshow/93116505.cms [4] Moneycontrol (2022, June 22). SBI to raise Rs 25,000 crore through QIP; appoints six investment banks to manage issue. Retrieved from https://www.moneycontrol.com/news/business/sbi-to-raise-rs-25-000-crore-through-qip-appoints-six-investment-banks-to-manage-issue-9299091.html [5] Livemint (2022, June 15). SBI may raise up to Rs 15,000 crore via tier II bonds by August. Retrieved from https://www.livemint.com/news/india/sbi-may-raise-up-to-rs-15000-crore-via-tier-ii-bonds-by-august-11655312960533.html
The State Bank of India (SBI), with the largest assets among Indian lenders, is planning to raise ₹250 billion through a Qualified Institutional Placement (QIP) of shares, marking its largest share sale via QIP and its first equity fundraising since 2017. These funds freed from SBI's QIP exercise are part of the broader government plans to raise funds through stake sales and asset monetization, but the specific details about SBI tapping the debt market have not been disclosed.
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