State Bank of India prices Rs. 8,032 crore QIP

Earlier on January 2, 2014 the Government of India infused INR 2,000 crores into the Bank through a preferential allotment

January 31, 2014 8:40 IST | India Infoline News Service
State Bank of India on Thursday announced that it has priced its Qualified Institutions Placement (QIP) of 51,320,436 equity shares of face value Rs. 10 (Equity Share) at Rs. 1,565 per Equity Share. The gross issue size, upon allotment of Equity Shares will be Rs. 8,032 crores. This is the largest QIP equity issuance to date in India.
Earlier on January 2, 2014 the Government of India infused INR 2,000 crores into the Bank through a preferential allotment.
The placement when complete, will increase the overall capital adequacy ratio of the Bank to 12.81% and Tier I capital adequacy ratio to over 9.67% (based on risk weighted assets as on September 30, 2013). The QIP will result in dilution of Government of India stake to 58.6% post transaction.
Speaking on the issue, Arundhati Bhattacharya, Chairman, State Bank of India, 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. 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.”
Citigroup Global Markets India Private Limited, Deutsche Equities India Private Limited, DSP Merrill Lynch Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited, SBI Capital Markets Limited and UBS Securities India Private Limited were the Book Running Lead Managers to the QIP. The domestic legal advisors to the Bank were J. Sagar Associates. The domestic legal advisors and the international legal advisors to the Book Running Lead Managers were Amarchand & Mangaldas & Suresh A. Shroff & Co. and Allen & Overy, respectively.

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