SBI issues QIP to raise Rs 11,000 crore

The bank is selling new shares in a price range of Rs 275.76-Rs 287.25 a share

Country's largest lender State Bank of India (SBI) on Monday opened share sale through a private placement at Rs 287.58 a piece to raise Rs 11,000 crore.

This is part of plans to garner 15,000 crore capital from markets in the current financial year (FY).

In a regulatory filing, the bank said it has opened 'qualified institutional placement' (QIP) of equity shares of face value of Rs 1 to qualified institutional buyers.

"The floor price in respect of the issue, based on the pricing formula of Sebi, is Rs 287.58 per equity share of the bank and the relevant date for this purpose...Is June 5, 2017," the filing said.

It further said the bank may offer a discount of not more than 5 per cent to the floor price.

According to sources, SBI plans to raise Rs 11,000 crore through this QIP.

In March, the central board of SBI at its meeting had approved raising of equity capital up to Rs 15,000 crore during FY18.

The board had permitted the bank to raise funds by way of Follow-on Public Offer (FPO) or rights issue or QIP or American Depository Receipt (ADR) or Global Depository Receipt (GDR) or employee stock options.

The bank's stock closed at Rs 287.35, down 0.02 per cent, on BSE.