SBI share price hits 2025 high after Rs 25,000 crore QIP launch; will the rally continue?

Shares of State Bank of India (SBI) were trading 0.23 per cent higher at Rs 833.65 on the NSE at 12:14 PM, after the country’s largest lender launched a qualified institutional placement (QIP) to raise up to Rs 25,000 crore—the largest such issue till date.

SBI, the largest lender in the country, has launched this share sale to institutional investors with a floor price of Rs 811.05, representing a 2.5 per cent discount on Wednesday’s closing price. Separately, the bank’s board has approved another Rs 20,000 crore fund raise through bond issuance.

Earlier in the day, the stock touched an intra-day high of Rs 840.35, marking its highest level in calendar year 2025. This also extended SBI’s rally to a fourth straight session, with the stock gaining nearly 4 per cent over this period.

Despite Thursday’s gains, SBI has underperformed the broader market in CY25 so far. The stock is up 5 per cent year-to-date, compared to a 5.3 per cent rise in the BSE Sensex.

QIP Details and Capital Plans

The QIP targets institutional investors to support SBI’s future capital needs. As per the Preliminary Placement Document, proceeds from these fundraises will be used to augment Tier I capital, support growth plans, and enhance the bank’s business operations.

Investor Outlook

The QIP is a significant step in strengthening SBI’s capital base amid rising credit demand. SBI stock is Motilal Oswal's preferred pick within the PSU Bank space. It has a 'Buy' rating on the stock with a share price target of Rs 925. 

Market watchers will closely monitor the QIP subscription and bond issue outcomes.

Analysts view the capital raise as a positive move that may boost investor confidence and help the bank maintain growth momentum.

SBI share price hits 2025 high after Rs 25,000 crore QIP launch; will the rally continue?