SBI's Record ₹25,000 Crore Share Sale Oversubscribed Threefold, Bids Near ₹1 Lakh Crore

State Bank of India (SBI) has seen its ₹25,000 crore Qualified Institutional Placement (QIP) oversubscribed by more than three times, with investment bankers reporting bids approaching an astounding ₹1 lakh crore. This overwhelming demand underscores strong investor confidence in India's largest public sector bank.

Key Investors and Global Appeal

Leading the charge in this significant fundraising effort were major domestic players, including Life Insurance Corporation of India (LIC) and prominent mutual funds such as HDFC Life and ICICI Prudential Life. International heavyweights also showed keen interest, with Nomura, Millennium, BlackRock, and British hedge fund Marshall Wace among the top foreign investors.

Bankers close to the deal highlighted that many foreign investors view SBI as a direct reflection of India's economic potential. They also noted the rarity of such an opportunity to make substantial investments in a blue-chip stock without causing market disruption.

QIP Details and Strategic Importance

The QIP officially launched on July 16, 2025, with shares offered at a floor price of ₹811.05, a 2.5% discount to the previous day's closing price. This marks SBI's first major equity fundraising through a QIP since its ₹15,000 crore issue in 2017.

The capital infusion is critical for SBI, whose Common Equity Tier 1 (CET1) capital stood at 10.81% as of March 31, 2025 – among the lowest for large public sector banks. This new capital is projected to boost the CET1 ratio by up to 60 basis points, significantly bolstering the bank's financial resilience and paving the way for increased credit growth.

Supporting Growth and Regulatory Compliance

The fresh capital aims to support SBI's rapidly expanding loan book, especially as its assets have now surpassed the ₹60 trillion mark, and to meet crucial regulatory requirements. While strengthening the bank's position, the QIP will also lead to a marginal reduction in the government's ownership stake, which was 57.43% prior to the share sale to institutional investors.

A syndicate of top investment banks, including Citigroup, HSBC, ICICI Securities, Kotak, Morgan Stanley, and SBI Capital, managed the transaction, notably offering their services without charging fees.