SBI QIP: A hit without being underpriced

Pricing at Rs 287.25 is better than Street's expectations

Whether government-owned banks would garner enough interest in the secondary market has been a recent talking point in the investor community.
 

State Bank of India (SBI), this country's largest, was among the first to announce a plan this year to raise funds — Rs 15,000 crore — through Qualified Institutional Placement (QIP). 

Pricing is an important aspect for all capital raising. Many QIPs get placed only at a discount to the market price. When bank chief Arundhati Bhattacharya was asked if the money could be raised without compromising on valuation, she confidently said the bank would not take more than a