Shares of the State Bank of India (SBI), the country's largest lending institution, fell by 0.35%, equivalent to INR 2.10, on Monday, settling at INR 596.00. The decline followed an announcement from the bank about its plans to raise INR 10,000 crore through an infrastructure bond issuance.
On Monday, SBI successfully raised the planned INR 10,000 crores with a coupon rate of 7.49% via its fourth infrastructure bond issuance. The issue attracted significant interest, being oversubscribed by more than five times and drawing bids worth INR 21,045.10 crores against the base issue size of INR 4,000 crores. As a result, SBI decided to accept up to INR 10,000 crore at the aforementioned coupon rate, payable annually and representing a spread of 12 basis points over the corresponding FBIL G-Sec par curve.
In addition to the bond issuance, SBI also announced on Monday that it would be divesting its shares in Rajshree Sugars and Chemicals Ltd., as well as MSP Steel & Power Limited.
The bank's stock has seen fluctuations over various time frames. Over the past week, there has been a decline of 0.75% in SBI's share price. However, over the past month and six months, the bank's shares have seen substantial increases of 5.03% and 17.20% respectively. Despite this growth, there has been a slight year-to-date dip of 2.38%. Over the past year, SBI's stock has risen by 9.91%.
In comparison to SBI's performance, India's benchmark Nifty 50 index has fallen by 2.35% in the last five trading sessions but has risen by 2.14% in the past month and by 15.85% over the past six months. The index has increased by 8.14% year-to-date and has seen a considerable gain of 15.64% over the past year.
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