SBI's Rs15,000-cr share sale likely in June: report
24 April 2015
State Bank of India is likely to enter the market with a share issue to raise up to Rs15,000 crore ($2.4 billion) in June this year after India's top lender saw a fall in its stock price in April, reports quoting sources involved in the process said.
Shares of the state-run lender have fallen 8.5 per cent since February-end.
SBI had received shareholders' approval for raising funds in February and the sale would be fast-tracked under a stock market process that exempts select major companies from complying with the disclosure and filing requirements prescribed by market regulator Securities and Exchange Board of India (Sebi), according to reports.
SBI, which is sitting on a big pile of non-performing loan assets, needs a fresh infusion of funds to strengthen its balance sheet and revive lending as and when demand for funds picks up in the country.
The government has asked banks intending to make share offerings to decide on the timing of their follow-on public offers (FPO) during its quarterly results between 23-25 May, reports said.
SBI is also reported to have selected eight investment banks, including Axis Bank, Bank of America Merrill Lynch, Barclays, JM Financial, and Kotak Mahindra Capital to advise on the sale.
On Friday, the State Bank of India stock closed at Rs275.65, down Rs1.6 (or 0.58 per cent) from the previous day's close, against its 52-week high of Rs335.90 and 52-week low of Rs203.55.