Mumbai: State Bank of India's plan to raise up to 150 billion rupees ($2.4 billion) via a share sale will now likely take place in June instead of April due to a fall in the lender's stock price, three sources directly involved in the process. Shares of the country's biggest lender by assets have fallen 8.5 percent since February-end.
A SBI spokesman was not immediately reachable for comment. State-run SBI received shareholders' approval to raise funds in February as part of efforts to strengthen its balance sheet on hopes of a pickup in loan demand in Asia's third-largest economy.
The share sale would happen via the "fast track" follow-on offering route, said the sources. Under the fast-track process, select large companies are exempted from complying with the market regulator's disclosure and filing requirements.
The government has asked the bank to decide on the timing of the FPO during its quarterly results between May 23-25, the sources added. SBI has selected eight investment banks, including Axis Bank, Bank of America Merrill Lynch, Barclays, JM Financial, and Kotak Mahindra Capital to advise on the sale.
