By Admin 
State bank of india: State Bank of India, the country’s largest public sector bank (State Bank of India) is preparing to sell shares worth Rs 25,000 crore to its institutional investors next week. Sources associated with the case say that this can be the biggest deal of its kind in the country.
Board approved in May
According to a report by Bloomberg, if a qualified institutional placement (QIP) is completely subscribed, it will be the largest QIP based equity fundrazing ever in India, which will overtake the sale of Rs 225.6 billion by Coal India Limited in 2015. The bank’s board approved this sales in May. However, the plan has not been finalized yet, there may be some changes in it. Earlier, the bank raised funds through QIP in June 2017. At that time SBI raised Rs 15,000 crore by selling 522 million shares.
Why did the bank decide to sell shares?
It is being told that this sale will increase the capacity of the bank to give loan, the balance sheet will be strong and it is a part of the comprehensive plans to meet regulatory needs. It is being told that the bank has selected more than six merchant banks for this transaction, including the names of Kotak Mahindra Capital Company, ICICI Securities, HSBC Securities and Capital Markets, Citragroup Global Markets, Morgan Stanley and SBI Capital Markets.
Sold your stake in Yes Bank
In the same year, SBI sold its 13.19 percent stake in YES Bank to Sumimoto Mitsui Banking Corporation (SMBC) of Japan. The deal took place for Rs 8,889 crore. With this, now Yes Bank has reduced SBI’s stake to 10.78 percent. SMBC Sumimoto is a unit of Mitsui Financial Group.
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