Kotak, HSBC, SBI Cap, CLSA, BoAML to manage SBI QIP

MUMBAI: State Bank of India (SBI) has appointed Kotak Mahindra Capital, HSBC India, CLSA, Bank of American Merrill Lynch and SBI Capital Markets to manage its qualified institutional placement (QIP) issue, said people with knowledge of the matter.

The country’s largest lender received shareholder approval last month to raise as much as Rs 20,000 crore through share sale, following board assent for the plan. The bank may raise at least half that amount in this QIP, said the people cited above.

“Whatever capital we raise will be for growth. We don’t need any capital for risk purposes or meeting our capital requirements,” SBI chairman Rajnish Kumar had said after September quarter results. “Growth seems to be very good and opportunities seem to be very good. If the pricing is good, environment is good, growth potential is there, then we will decide (on the issue).”


The bank has predicted credit growth in the range of 10-12 per cent for FY19. “We will start the documentation work now and then the road shows will begin,” said a senior banker involved with the sharesale process. On Thursday, SBI's shares ended little changed at Rs 304.65 on the BSE.

Ten companies raised Rs 6,107 crore through QIPs in nine months to December, the lowest in a financial year since FY12, mainly because of the overall weakness in the markets. QIP issuances rose to a record Rs 62,520 crore in FY18, as the market was at the peak of the bull run, according to Prime Database.

SBI raised Rs 15,000 crore through the QIP in June 2017, since when stock has returned 6 per cent.