NSE IPO Impact: SBI Shares Slip As ₹22,569 Crore Issue Opens; Bank To Sell NSE Stake Worth ₹2,851 Crore

Shares of India's largest lender, State Bank of India (SBI) were trading lower on Thursday as the ₹22,569 crore initial public offering (IPO) of the National Stock Exchange (NSE) opened for subscription.

SBI shares were down 0.17% at ₹989.70 on the NSE at 12:00 pm, after gaining as much as 0.95% earlier in the session to touch ₹1,000.90. The bank is among the existing NSE shareholders selling part of its stake through the offer for sale (OFS) in the IPO.

NSE IPO: SBI To Sell Stake Worth ₹2,851 Crore

SBI is offering 1.597 crore NSE shares through the OFS component of the IPO. At the upper end of the NSE IPO price band of ₹1,785 per share, the stake sale could fetch SBI around ₹2,851 crore.

SBI Capital Markets, a subsidiary of the lender, is separately selling around 87.8 lakh NSE shares. At the upper price band, the stake is valued at around ₹1,567 crore.

The SBI group is also participating in the NSE IPO's anchor book. SBI Mutual Fund, SBI General, SBI Life and SBI Pension Fund together invested more than ₹400 crore in the anchor portion of the issue.

The NSE IPO opened on September 17 and will remain open until September 21. NSE shares are scheduled to list on the BSE on September 24.

The IPO comprises an OFS of 12.64 crore NSE shares, with the price band fixed at ₹1,700-₹1,785 per share. There is no fresh issue component, so the proceeds will go to the existing shareholders selling their stakes rather than to NSE.

SBI Focuses On Lending And Digital Expansion

Beyond the NSE IPO, SBI continues to focus on expanding its core banking operations while improving operating efficiency.

The lender is looking to scale up loans to self-employed customers and professionals, along with retail current account deposits and wealth management. Cross-selling and digitisation are also among the areas being pursued to expand the bank's business.

SBI Chairman C S Setty recently said the bank expects to deploy funds raised through foreign currency non-resident bank (FCNR(B)) deposits over the next three to four months.

Setty was referring to more than $127 billion mobilised from the Indian diaspora through a special concessional swap window announced by the Reserve Bank of India (RBI).

Speaking on the sidelines of the Global Fintech Fest in Mumbai last week, Setty said banks would remain responsible for deploying the funds and dismissed concerns that the inflows would necessarily lead to unusually high lending.

He also said the RBI's six-member Monetary Policy Committee was unlikely to raise interest rates at its October policy review.

The NSE IPO will remain open for subscription until September 21, with NSE shares scheduled to begin trading on the BSE on September 24.

SBI Share Price Performance

SBI shares have gained around 19% over the past year, although the stock has declined about 7% over the last six months. The stock's 52-week range stands at ₹821.65 to ₹1,234.70. As of September 16, SBI closed at ₹991.40 on the NSE, before moving to an intraday high of ₹1,000.90 on September 17.

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