Bank of India approves QIP of Rs 3,000 crore, fixes minimum price at Rs 66.19 per share
State-owned Bank of India on Wednesday approved the launch of QIP, aimed at raising equity capital of Rs 3,000 crore to fund business development and meet regulatory compliance.
The bank’s capital issue committee in its meeting approved and adopted the initial placement document cum application form for the issue and authorized it to open the issue on Wednesday (August 25, 2021), Bank of India said in a regulatory filing. said.
The lender has fixed the floor price for Qualified Institutional Placement (QIP) at Rs 66.19 per equity share. It organized a non-deal roadshow from August 10-23 to woo investors, in which 26 entities including Yes Bank, IDFC Bank, HDFC Treasury, ICICI Prudential Life, Edelweiss, SBI Life, Mirae, Kotak Life, Federal participated. took. Banks, Marshall Weiss and Polunin.
The bank said it can offer customers of the issue a discount of more than 5 per cent on the minimum value. The bank said that the next meeting of the capital issue committee of the bank will be held on August 30 to consider the issue price of the shares to be allotted under the QIP.
The bank aims to boost its regular business by infusing capital to improve the technology platform, co-lending digital operations, tie up with fintech companies and synergize the technology platform with overseas and domestic operations.
Also, at present the government’s stake in the bank is more than 90 percent. Issuance of equity shares through QIP will reduce the promoter’s stake significantly. This will help the bank to ensure regulatory compliance of SEBI guidelines for maintaining minimum public shareholding.
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