MUMBAI: State Bank of India (SBI) has appointed Kotak Mahindra Capital, HSBC India, CLSA, Bank of American Merrill Lynch and SBI Capital Markets to manage its qualified institutional placement (QIP) issue, said people with knowledge of matter.The countrys largest lender received shareholder approval last month to raise as much as Rs 20,000 crore through share sale, following board assent for plan.
The bank may raise at least half that amount in this QIP, said people cited above.Whatever capital we raise will be for growth.
We dont need any capital for risk purposes or meeting our capital requirements, SBI chairman Rajnish Kumar had said after September quarter results.
Growth seems to be very good and opportunities seem to be very good.
If pricing is good, environment is good, growth potential is there, then we will decide (on issue).
The bank has predicted credit growth in range of 10-12 per cent for FY19.
We will start documentation work now and then road shows will begin, said a senior banker involved with sharesale process.
On Thursday, SBI's shares ended little changed at Rs 304.65 on BSE.Ten companies raised Rs 6,107 crore through QIPs in nine months to December, lowest in a financial year since FY12, mainly because of overall weakness in markets.
QIP issuances rose to a record Rs 62,520 crore in FY18, as market was at peak of bull run, according to Prime Database.SBI raised Rs 15,000 crore through QIP in June 2017, since when stock has returned 6 per cent.