A $4.1 billion rights issue by State Bank of India, India’s largest bank, was fully covered on Tuesday, despite the global financial turmoil that knocked its shares down by nearly a third during the offer period.
The state-run bank offered investors one share at Rs1,590 for every five held, looking to raise Rs16,736 crore to meet demand for loans in a growing economy. It was the bank’s first share sale in more than a decade.
The Bank of New York with a 7.42% stake through SBI’s global depository receipts and state-run Life Insurance Corp. of India with a 3.6% stake are the largest shareholders in the bank after the government.The government said last month it would invest Rs9,996 crore to maintain its 59.73% stake in the bank.
Citigroup, CLSA India, Deutsche Bank, DSP Merrill Lynch, Kotak Investment Bank and SBI Capital Markets are the lead managers to the issue.
Read more in The Livemint article.
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