indias-sbi-taps-shareholders-for-41-billion

India's SBI taps shareholders for $4.1 billion

State Bank of India opts for a rights issue to raise much needed funds in a tough market.
March 19, 2008
The State Bank of India SBI has raised Rs167.4 billion $4.1 billion from its first share sale in more than 10 years at a time when the Indian market remains under extreme pressure. This was possible since the lender opted to make use of a rights issue, tapping its own shareholder base for the funds.

Selling shares to investors already holding the stock meant the bank were dealing with people who are supposedly already convinced of the merits of the institution. For the bankÆs foreign shareholders, this was also a unique opportunity to increase their investments. SBI has a 20% foreign ownership limit that is already full, making it impossible for them to buy additional...
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