SBI's Rs1,000-crore bond issue subscribed nearly 18 times
19 Oct 2010
State Bank of India's Rs1,000-crore bond issue is reported to have received subscription of nearly 18 times its allotted amount with overwhelming response from both individual and institutional investors.
The issue, which opened for subscription yesterday, is likely to close tomorrow, ahead of the scheduled closing date of 25 October.
High net worth individuals are reported to have bid 18 times their allotted amount while institutional buyers have bid over 46 times their allotted share, CNBC-TV18 reported.
The Rs500-crore issue, consisting of series 1 lower Tier II bonds of face value of Rs10,000 each and series 2 lower Tier II bonds of face value of Rs10,000 each, has an option to retain over-subscription up to Rs500 crore.
The 9.25 per cent 10-year bonds and 9.5 per cent 15-year bonds have to be bid for Rs10,000 or multiples thereof.
SBI plans to deploy the issue proceeds to augment its capital base in line with its growth strategy.
The issue is managed by SBI Capital Markets Limited jointly with Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited.
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