Analyst Research Report Snapshot

Title:

State Bank of India (SBI) | Qualified Institutional Placement (QIP) | SBI to raise Rs 95.8 bn of equity by way of QIP to meet BASEL-III norms

Price:

$23.00

Provider:

IndiaNivesh Securities Pvt Ltd

Date:

23 Dec 2013

Pages:

3

Type:

AcrobatPDF

Companies referenced:

SBI.NS

Available for Immediate Download
Summary:

State Bank of India (SBI) | Qualified Institutional Placement (QIP) SBI to raise Rs 95.8 bn of equity by way of QIP to meet BASEL-III norms State Bank of India (SBI) is planning to raise Rs 95.8 bn of equity before March 2014 from the market by way of Qualified Institutional Placement (QIP) to meet the capital adequacy requirements and to meet the advances growth during the current year as well as for years to come. It should be in such a way that the holding of the Central Government at any time should not fall below 58%. The propose QIP has been approved by Government of India (GOI) and RBI. GOI has been periodically infusing capital into the public sector banks with an intention of maintaining the banks’ capital adequacy ratios. SBI, in its meeting held on December 12, 2013, has accorded its approval to fix the Issue Price at Rs. 1782.74 per share to issue 1,12,18,685 equity shares on preferential basis to Gol for a consideration of Rs 20 bn. Valuation: At CMP of Rs 1751, the stock is currently trading at (consolidated) P/ABV of 1.2x and 1.1x for FY14E and FY15E respectively. We continue to recommend BUY on SBI with target price of Rs 1926 (P/ABV of 1.3x for FY15E) prior to adjustment made for QIP.

Why buy analyst research?

  • Institutional quality research
  • Available for Immediate Download
  • Detailed company or industry insight
  • Print or save
  • 24 hour customer support
Return to previous page without adding this item to your cart.
Email Customer Support.

About Analyst Research

Analyst research reports are available for immediate download after purchase. You will have unlimited access to the report for 24 hours after purchase, to download, print or save it as many times as you wish. Analyst Research provided by Reuters does not constitute investment advice, and is not endorsed by Reuters Research. This information is protected by copyright and intellectual property laws. More information on Analyst Research.