SBI gains on raising Rs 10,000 crore through bonds
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State Bank Of India is currently trading at Rs. 856.10, up by 7.00 points or 0.82% from its previous closing of Rs. 849.10 on the BSE.
The scrip opened at Rs. 854.70 and has touched a high and low of Rs. 858.00 and Rs. 851.05 respectively. So far 88551 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 912.10 on 03-Jun-2024 and a 52 week low of Rs. 543.15 on 26-Oct-2023.
Last one week high and low of the scrip stood at Rs. 869.90 and Rs. 837.65 respectively. The current market cap of the company is Rs. 757788.80 crore.
The promoters holding in the company stood at 57.54%, while Institutions and Non-Institutions held 34.80% and 7.67% respectively.
State Bank of India (SBI) has raised Rs 10,000 crore at a coupon rate of 7.36% through its sixth infrastructure bond issuance. The issue attracted overwhelming response from investors with bids in excess of Rs 18,145 crore and was oversubscribed by around 3.6 times against the base issue size of Rs 5,000 crore. The total number of bids received was 120 indicating wider participation with heterogeneity of bids.
The investors were across provident funds, pension funds, insurance companies, mutual funds, corporates etc. The proceeds of bonds will be utilized in enhancing long term resources for funding infrastructure and affordable housing segment. Based on the response, the Bank has decided to accept Rs 10,000 crore at a coupon rate of 7.36% payable annually for a tenor of 15 years. The instrument is rated ‘AAA’ with stable outlook. With the current issuance, the total outstanding Long-Term Bonds issued by the Bank is at Rs 59,718 crore.
This issuance is also very significant as the Bank has been successful in raising long duration bonds successively. This issuance will help in developing a long-term bond curve and encourage other banks to issue bonds of longer tenor.
State Bank of India is the country’s largest lender and it offers a wide range of services in the Personal Banking, Agriculture/ Rural, NRI services, SME and Corporate Banking etc.
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