PSU Bank Stock To Buy After $3-Bn Fundraising Plan Approved, TP Rs 1050: ICICI Direct

Board of Directors of State Bank of India on June 11 gave their nod to the proposal of raising up to $3 billion (approximately Rs 25,000 crore), as per the BSE filing. Current market price of SBI share on BSE is Rs 840.20 per share. Meanwhile, 2 leading analysts have recommended buy call to State Bank of India share with maximum target price of Rs 1050 per share. ICICI Direct has recommended buy to State Bank of India shares with target price of Rs 945 per share and keep stop loss at Rs 788 per share.

The analyst has recommended the time period of 3 months when the stock is likely to reach the target price. Meanwhile, JM Financial too suggested buy call with target price of Rs 1050 per share. Earlier this year on May 9, Board of SBI recommended a dividend of Rs 13.70 per share and set May 22, 2024 as the record date. SBI shares zoomed 30.88% year-to-date and offered return of 46% in last 1-year. Check key details below:

Fundraising Approved: According to the BSE filing of SBI issued as on June 11, "We submit that the Executive Committee of the Central Board at its meeting held today i.e. 11th June 2024 has approved, inter alia, to examine the status and decide on long term fund raising in single / multiple tranches of up to $3 billion under RegS/144A, through a public offer and/or private placement of senior unsecured notes in US dollar or any other major foreign currency during FY 2024-25," SBI said in the BSE filing on Tuesday."

SBI Dividend: According to the BSE filing of the PSU issued as on May 9, 2024, "Pursuant to Regulation 42 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform that the Central Board of the Bank, at its meeting held today, has declared a dividend of Rs 13.70 per equity share of Re 1/- each fully paid up (i.e. 1370%) for the year ended 31.03.2024."

State Bank of India Shares Performance: The company has a market capitalisation of Rs 7,49,845.89 crore. 52-week high price of SBI shares on BSE is quoting Rs 912.10 apiece (as on 03/06/2024) and 52-week low price is quoting Rs 543.15 apiece (as on 26/10/2023), respectively. SBI shares offered return of 35% in last 6-months, gave return of 88% in last 2-years, and surged 95% in last 3-years. In last 5-years, State Bank of India shares zoomed 144%.

SBI Dividend History: SBI announced a total of 23 dividends since July 2, 2001. In last 1-year, State Bank of India declared an equity dividend amounting to Rs 13.70 per share. At the current share price of Rs 840.20 per share, SBI offers a dividend yield of 1.63%. SBI announced its highest dividend in 2013 at Rs 41.50 per share.

SBI Stock Split History: State Bank of India split face value of its share once since November 20, 2014. The PSB last sub-divided the face value of its shares from Rs 10 to Re 1 in 2014.SBI share traded ex-split as on November 20, 2014.

Disclaimer: The stock has been picked from the brokerage report of JM Financial and ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.