New Delhi [India]: The country’s largest lender State Bank of India (SBI) on Tuesday invited bids from investment bankers for its proposed Rs. 15,000 crore capital raising plan.
The bank announced receiving of the approval to raise the amount for the fiscal year ending March 2018, which may be mopped up through a QIP, FPO (qualified institutional placement, follow-on public offer) or a rights issue, reported the MoneyControl.
If completed, the issue by the bank will become the first such sale by SBI since 2008 to raise Rs. 16,740 crore by selling shares via a rights sale.
The last date of submission of bids by merchant bankers for managing the QIP/FPO issue is May 22.
Earlier in March, a statement on the BSE read that SBI had reported that the sale could be an FPO, QIP, rights issue, Global Depository Receipt, American Depository Receipt or combination of these.
If approved by the shareholders on June 15, the state-owned bank will be able to raise Rs 15,000 crore by selling shares in India or abroad anytime this year.
Last year, SBI had received Rs. 7,575 crore from the government as part of its capital infusion plan.
As per the market estimates, the public sector bank would require Rs. 1.80 lakh crore to meet Basel III norms, while the government will provide only Rs. 70,000 crore for a four-year period till 2019. (ANI)