State Bank of India (SBI), a public sector lender, gained traction on Tuesday after the bank disclosed its intention to issue senior unsecured notes for a whopping $2 billion in FY24. The board members of the lender will meet on April 18 to talk about and review the same. Prabhudas Lilladher brokerage is bullish on the stock.
SBI shares were up $6.55 or 1.24% at the time of writing, trading at 532.85 per share on the BSE. The share price was close to the day’s high of $535.50 per unit. The stock increased by more than 1.7% overall during the day.
At the current market price, its market value is over 4,75,369.45 crore, up about 5,667.12 crore from the close of nearly 4,69,702.33 crore the day before.
SBI revealed on Monday that the Executive Committee of the Central Board will convene on April 18, 2023, to review the situation and make a decision regarding long-term fundraising of up to $ 2 billion.
During the Financial Year 2023–2024, senior unsecured notes will be issued in US dollars or any other convertible foreign currency as part of the $2 billion fundraising effort.
In order to raise $2 billion, the board will decide whether to do so in a single or numerous tranches. whether a private placement or a public offering should be used.
According to Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, the stock price has formed a double bottom formation-like pattern on the daily chart and has since recovered significantly. It is currently on the rise.
Parekh continued, “We predict that this stock will continue to gain momentum in order to reach even higher targets. Also, the RSI indicator has maintained a favourable bias by reversing its trend and recommending a buy. We advise buying this stock with a stop loss of 510 and an upside target of 590.”