Bank of India Gears Up for Rs 4,000 Crore QIP Launch as Shares Open Higher

5 Dec 2023 , 01:32 PM

Bank of India’s shares open with gains amid reports of the PSU bank gearing up for a qualified institutional placement (QIP) this week. The anticipated QIP is in the range of Rs 3,500 to 4,000 crore, with a base issue of Rs 2,000-2,500 crore and an additional greenshoe option of Rs 1,500 crore.

The issue price for the QIP is expected to be set at a discount to the Securities and Exchange Board of India (SEBI) floor price. Bank of India shares, at the time of writing, are trading 1.5% higher at Rs 110.05 on the National Stock Exchange (NSE).

In the quarter ending September 2023, the bank reported a 52% YoY increase in net profit at Rs 1,458 crore, with core net interest income rising 13% YoY to Rs 5,740 crore. The growth is attributed to a 10% increase in advances and a slight widening in the net interest margin at 3.08%. Non-interest income also rose by 19% to Rs 1,688 crore.

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