By Sanskriti Dadhich
After
raising Rs 15,000 crore through the largest-ever equity issuance in the
country, State Bank of India will not seek any capital
infusion from the government in the current fiscal.
The bank
recently raised Rs 15,000 crore through qualified institutional placement
(QIP). It issued around 52.21 crore new shares at a price of Rs 287.25. Bank
will be focusing on listing its life insurance arm. According to Arundhati Bhattacharya the bank is planning on listing the life insurance
subsidiary so there will be some more capital and they will get through non-core
divestments. It may also consider some stake sale in its non-core assets
including CCIL, NSE and UTI MF.
SBI's QIP
was over-subscribed and demand exceeded Rs 27,000 crore. There was a huge
demand from DIIs, FIIs, sovereign wealth funds and many investors who have
never investedin a public sector institution earlier. The issue received
an overall FII demand in excess of Rs 11,000 crore. Domestic institutional
investors' (DIIs) demand was of Rs 8,500 crore. LIC had asked for 38 per cent
share in the total QIP but only 77 per cent of its total demand was allotted. LIC's
stake after this investment would be 10.4 per cent, up from 8.6 per cent.
QIP was aimed at supporting growth. The bank expects a
credit growth of 10-12 per cent in the current fiscal and 14 per cent in fiscal
2018-19.
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