State-owned Bank of India on Wednesday permitted the launch of QIP, geared toward elevating Rs 3,000 crore fairness capital to fund enterprise progress and meet regulatory compliance.
The capital difficulty committee of the financial institution at its assembly permitted and adopted the preliminary placement doc cum software type for the problem and authorised the opening of the problem on Wednesday (August 25, 2021), Bank of India mentioned in a regulatory submitting.
The lender has set the ground value for the certified institutional placement (QIP) at Rs 66.19 per fairness share. It held a non-deal roadshow from August 10-23 to woo buyers, by which as many as 26 entities participated, together with Yes Bank, IDFC Bank, HDFC Treasury, ICICI Prudential Life, Edelweiss, SBI Life, Mirae, Kotak Life, Federal Bank, Marshal Wace and Polunin.
The financial institution mentioned it could supply a reduction of no more than 5 p.c on the ground value to the subscribers of the problem. The subsequent assembly of the capital difficulty committee of the financial institution will likely be held on August 30 to contemplate and decide the problem value of shares to be allotted below the QIP, the financial institution mentioned.
The financial institution goals to gasoline its common enterprise progress, other than deploying capital for enhancing the technical platform, co-lending digital operations, tie-ups with fintech corporations, and synchronization of tech platform with abroad and home operations.
Also, the federal government’s shareholding within the financial institution at current is in extra of 90 p.c. With the issuance of fairness shares by the QIP, the promoter’s stake will come all the way down to a considerable degree. This will assist the financial institution meet the regulatory compliance with Sebi tips of sustaining minimal public shareholding will likely be ensured.
The scrip of the financial institution closed at Rs 64.90 apiece on BSE, up 2.04 p.c from the earlier shut.