LIC Increases Stake in SBI to 9.49% through QIP, Invests ₹5,000 Crore
ByAinvest
Monday, Jul 21, 2025 5:07 pm ET1min read
BLK--
The QIP, which is the largest ever in Indian history, witnessed overwhelming demand, with bids worth Rs 1.10 lakh crore from about 120 institutional investors globally. This includes marquee names such as the $11-trillion asset manager BlackRock Group and London hedge fund Marshall Wace [2]. The sale underscores confidence in SBI's growth prospects and will bolster the bank's common equity tier 1 (CET 1) ratio, positioning it for future expansion.
SBI's shares retreated 0.35% to Rs 829 apiece on Thursday, following the announcement of the QIP. LIC, the largest institutional shareholder of SBI, is likely to retain its stake at the current level, according to people familiar with the details. The SBI board is expected to meet soon to finalize the allocation of the shares [3].
The record Rs 25,000-crore institutional share sale is part of SBI's broader plans to support loan growth, strengthen its balance sheet, and meet regulatory requirements. The fundraise is aimed at boosting its CET 1 capital, which was at 11% in the March 2025 quarter, the lowest among public sector lenders. It’s also the first time since 2017 that the lender is tapping the equity market [3].
References:
[1] https://economictimes.indiatimes.com/markets/stocks/news/lic-ups-stake-in-sbi-to-9-49-via-qip-route-buys-over-6-1-crore-shares-worth-rs-5000-crore/articleshow/122817889.cms
[2] https://economictimes.indiatimes.com/markets/stocks/news/sbi-achieves-record-rs-25000-crore-institutional-share-sale-with-strong-investor-demand/articleshow/122718332.cms?from=mdr
[3] https://www.newindianexpress.com/business/2025/Jul/16/sbi-board-okays-raising-up-to-rs-20000-crore-through-bonds-qip-all-set-to-be-launched
LIC has increased its stake in SBI to 9.49% by buying over 6.1 crore shares worth Rs 5,000 crore through the QIP route. SBI's record Rs 25,000-crore institutional share sale was bid more than four times the stock on offer, with marquee names such as BlackRock Group and Marshall Wace joining in to buy into the mass lender's first such capital-raising in eight years.
Life Insurance Corporation of India (LIC) has significantly increased its stake in State Bank of India (SBI) by participating in the bank's record Rs 25,000-crore qualified institutional placement (QIP). LIC acquired over 6.1 crore shares at Rs 817 each, amounting to a total investment of ₹5,000 crore, thereby boosting its holding in SBI to 9.49% [1].The QIP, which is the largest ever in Indian history, witnessed overwhelming demand, with bids worth Rs 1.10 lakh crore from about 120 institutional investors globally. This includes marquee names such as the $11-trillion asset manager BlackRock Group and London hedge fund Marshall Wace [2]. The sale underscores confidence in SBI's growth prospects and will bolster the bank's common equity tier 1 (CET 1) ratio, positioning it for future expansion.
SBI's shares retreated 0.35% to Rs 829 apiece on Thursday, following the announcement of the QIP. LIC, the largest institutional shareholder of SBI, is likely to retain its stake at the current level, according to people familiar with the details. The SBI board is expected to meet soon to finalize the allocation of the shares [3].
The record Rs 25,000-crore institutional share sale is part of SBI's broader plans to support loan growth, strengthen its balance sheet, and meet regulatory requirements. The fundraise is aimed at boosting its CET 1 capital, which was at 11% in the March 2025 quarter, the lowest among public sector lenders. It’s also the first time since 2017 that the lender is tapping the equity market [3].
References:
[1] https://economictimes.indiatimes.com/markets/stocks/news/lic-ups-stake-in-sbi-to-9-49-via-qip-route-buys-over-6-1-crore-shares-worth-rs-5000-crore/articleshow/122817889.cms
[2] https://economictimes.indiatimes.com/markets/stocks/news/sbi-achieves-record-rs-25000-crore-institutional-share-sale-with-strong-investor-demand/articleshow/122718332.cms?from=mdr
[3] https://www.newindianexpress.com/business/2025/Jul/16/sbi-board-okays-raising-up-to-rs-20000-crore-through-bonds-qip-all-set-to-be-launched
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet