SBI closes Rs. 15000 crore mega QIP

The State Bank of India (SBI) on Friday successfully concluded India's largest ever Qualified Institutional Placement (QIP) of Rs. 15,000 crore that witnessed oversubscription and demand, which exceeded Rs. 27,000 crore.

The lender also witnessed a very strong demand from DIIs, amounting to Rs. 8500 crore, excluding one large DII.

It announced 26 percent of the issue being taken up by FIIs- long only, 25 percent by DIIs (excluding one large DII), and 11 percent by high quality FII hedge funds.

"The overwhelming response to the QIP from a diverse cross section of investors highlights the faith reposed in SBI by both domestic and foreign institutional investors. The QIP allocation further enhances the diversity of the shareholder base which will add value to the Bank," SBI mentioned in a statement.

It added that post the merger with erstwhile Associate Banks, which coincides with the improving economic environment in India, we believe that the Bank is once again at an inflection point where the positive bias will be significant.

"We expect to leverage the synergies offered by the merger, while continuing to focus on issues such as corporate credit growth and asset quality, thus leading to improvement in RoEs over the long term," it added.