The Rs 25,000-crore qualified institutional placement (QIP) of India's largest lender State Bank of India (SBI) saw very strong investor interest, being subscribed three-times its offer size in less than a day, CNBC-Awaaz reported on July 17.
The PSU lender had launched its QIP in the second half of July 16 at a floor price of Rs 811.05 apiece, at a slight discount of the last traded price. The fundraise is expected to help SBI’s loan growth and strengthen the balance sheet. This is the first time since 2017 that SBI has tapped the equity market to raise capital.
The QIP has received bids for Rs 75,000 crore worth of shares as against its offer size of Rs 25,000 crore, said CNBC Awaaz. Life Insurance Corporation of India (LIC), the anchor investor for the QIP, led the subscription race among domestic fund houses by bidding for shares worth Rs 7,000 crore. Quant Mutual Fund followed, by bidding for Rs 3,000 crore shares. HDFC Pension Fund, ICICI Prudential Mutual Fund, Motilal Oswal Mutual Fund and Birla Mutual Fund have also strongly participated.
Among the FIIs, Nomura has bid for Rs 1,800 crore worth of shares while Marshall Wace and Millennium bid for Rs 1,500 crore shares each, it further said.
| SBI QIP SUBSCRIPTION STATUS | |
| Name | Demand |
| Domestic Fund Houses | |
| LIC | Rs 7,000 crore |
| Quant Mutual Fund | Rs 3,000 crore |
| HDFC Pension Fund | Rs 2,000 crore |
| ICICI Prudential Mutual Fund | Rs 1,500 crore |
| Motilal Oswal Mutual Fund | Rs 1,500 crore |
| Birla Mutual Fund | Rs 1,500 crore |
| FII | |
| Nomura | Rs 1,800 crore |
| Marshall Wace | Rs 1,500 crore |
| Millennium | Rs 1,500 crore |
Moneycontrol couldn't independently verify the report.
In May 2025, the bank said it received its board approval to raise equity capital aggregating up to Rs 25,000 crore in one or more tranches during FY2026 through QIP/ follow-on public offer (FPO) or any other permitted mode.
The QIP is part of SBI's broader plans to support loan growth, strengthen its balance sheet and meet regulatory requirements. It’s also the first time since 2017 that the lender, majority owned by the government, tapped the equity market.
SBI has shortlisted six investment banks to manage the transaction, including the Indian arms of Citigroup Inc. and HSBC Holdings Plc, as well as ICICI Securities Ltd., Kotak Investment Banking, Morgan Stanley, and SBI Capital Markets Ltd., Bloomberg News reported earlier.
The state-owned bank had last tapped the QIP route in the financial year 2017-18 (Apr-Mar), raising Rs 15,000 crore.
SBI shares were hovering in the green with marginal gains at Rs 835.75 apiece on July 17.
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