State Bank of India (SBI's) USD 1.45 billion qualified institutional placements (QIP) got a tepid response from investors today.
The bank managed to raise only USD 1.2 billion (Rs 7500 crore) at the lower price band of Rs 1565 per share.
Market sources indicate that the investor appetite was so low that individual investors subscribed to fewer SBI shares. Also the cap on the number of investors at 49 made it difficult for the bank to raise the required amount.
Also read: ICICI Bank Q3 profit grows 13% on higher NII, other income
According to sources investors were cautious about the sector. Deutsche bank, Citibank, HSBC, UBS, JPMORGAN & SBI CAP were the bankers to SBI QIP.
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