Subscribed over 17 times, SBI bond issue

Subscribed over 17 times, SBI bond issueThe State Bank of India's leading retail bond subject of Rs 1,000 crore was assured by 17 times on Monday (the opening day). The subject matter should be shutting down on October 25. The bond shall get selected on first-come first-serve method. Ever since it was oversubscribed on the first day, individuals applying on the 2nd or 3rd day should be having no option to manage the bond.

Market informers expressed that the shares which are already being reserved for high net worth individuals were assure assured by over 16 times, still as that hold back for retail shareholders were oversubscribed by 6.4 times. The bond should be presenting an interest of 9.25% for 10 years and 9.5% for 15 years.

Although, it is containing a call option and SBI should cash in the bond after 5 years of time. Even though if the bond is not being cashed in time period of 5 years, then the bank will offer an additional half a % point of interest.

As banks are offering an interest rate of 7% to 7.5% for 5 year deposit, the rate offered by SBI on the bond should be stamped as attractive. Citigroup, Kotak Mahindra Capital and SBI Capital Markets are the chief boss for the matter.