This Indian multinational banking company has raised Rs 3,717 crore through bonds

This Indian multinational banking company has raised Rs 3,717 crore through bonds

by 5paisa Research Team Last Updated: Mar 09, 2023 - 12:25 pm 738 Views
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With more than 200 years of existence, it is India's largest and oldest bank.

About the Fundraising

State Bank of India (SBI) raised Rs 3,717 crore through the offering of its third Basel III compliant Additional Tier 1 bond in the current fiscal year on March 8, 2023, at a coupon rate of 8.25%. Bond proceeds will be used to increase Additional Tier 1 Capital, the Bank's total capital base, and to boost capital adequacy in conformity with RBI Guidelines.
These bonds have a perpetual tenor with a call option after ten years and on each anniversary after that. With bids totalling Rs 4,537 crore, the offer received a resoundingly positive reaction from investors and was almost 2.27 times oversubscribed compared to the base issue of Rs 2,000 crore. 53 bids in total, which indicates greater involvement. The investors included insurance firms, provident funds, and pension funds.

Share price movement of State Bank of India

Scrip opened today at Rs 565 and made its day high at Rs 565.90. The 52-week high of the stock is Rs 629.65, whereas the 52-week low was Rs 430.80. Promoters hold 57.50%, whereas institutional and non-institutional holdings are 35.48% and 7.03%, respectively. Presently, the market cap of the company is Rs 5,01,652.44 crore.

Company profile
State Bank of India is a public sector banking and financial services statutory entity in India. The cornerstone of SBI's operation has always been serving the needs of the average person. The Bank uses technology to deliver and manage its wide range of unique products and services in a way that is both individualised and customer-focused. Since 1973, the State Bank of India has been actively engaged in the charitable endeavour known as community services banking. All of its administrative and branch offices around the nation support and take part in a wide range of charitable and social projects. Since it has an impact on people's lives everywhere in a variety of ways, the bank's business is more than just banking.

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