With 4.11 subscriptions, Bank of India's QIP raises Rs 4,500 crore for the lender

11 Dec 2023 , 01:38 PM

For its qualifying institutional placement of shares, which was subscribed 4.11 times, Bank of India received a resounding response. The QIP had a base size of Rs 2,250 crore and, in the event of an oversubscription, a greenshoe option of an additional Rs 2,250 crore.

The lender said in an exchange statement that it had received 104 offers totaling up to Rs 18,483 crore. Qualified institutional buyers were given shares by the state-owned lender at a price of Rs 100.20 each, which is over 5% less than the floor price of Rs 105.42.

The board had given the bank permission in April to raise an extra Rs 4,500 crore by additional Tier-1 bonds, a rights issuance, or a QIP. Additionally, the lender was given permission to issue Tier-2 bonds up to Rs. 2,000 crore that comply with Basel-III.

At September’s end, the bank’s capital adequacy ratio stood at 15.63%, with CET-1 capital amounting to 12.60%. The bank announced a 52% YoY increase in net profit to Rs 1,458 crore for the September quarter. To Rs 5,740 crore, the net interest income increased by 13% year over year.

The lender’s shares have returned almost 30% to investors so far this year, and over the last three years, they have increased by almost 116%.

The bank’s shares closed Friday at Rs 114.30, up 0.5% on the National Stock Exchange.

For feedback and suggestions, write to us at [e-mail]