Syndicate Bank launches Rs1,200 crore QIP
PremiumSyndicate Bank share sale has a base size of up to Rs700 crore with an upsize option of up to Rs500 crore. It has fixed a floor price of Rs88.57 per share
PremiumSyndicate Bank share sale has a base size of up to Rs700 crore with an upsize option of up to Rs500 crore. It has fixed a floor price of Rs88.57 per share
Mumbai: Syndicate Bank on Tuesday launched its qualified institutional placement (QIP), the state-run lender said in a filing with stock exchanges.
The lender is looking to raise up to Rs1,200 crore through the QIP, two people aware of the development said. The lender is looking at a base issue size of Rs700 crore with a green shoe option of another Rs500 crore, these people said, on the condition of anonymity.
Syndicate Bank has fixed a floor price of Rs88.57 per share. The QIP will close on 15 December, the filing said.
QIP is a capital-raising tool through which listed companies can sell shares, fully and partly convertible debentures, or any securities other than warrants that are convertible into stocks, to a qualified institutional buyer.
Syndicate Bank has appointed Equirus Capital Pvt Ltd, BOB Capital Markets Ltd, BNP Paribas, Centrum Capital Ltd, Elara Capital India Pvt. Ltd and IDBI Capital Markets & Securities Ltd to manage the QIP.
“Subject to compliance with applicable laws and regulations, our bank intends to use the net proceeds of the issue, for meeting capital requirement and to cater to its increasingly growing business level," the bank said in its QIP prospectus filed with the stock exchanges.
On Monday, Mint reported that at least three state-run lenders—Punjab National Bank (PNB), Syndicate Bank and Indian Bank—are likely to launch their qualified institutional placement (QIP) offerings.
PNB launched its Rs5,000 crore QIP on Monday evening.
Earlier this month, two more state-owned lenders, Bank of Maharashtra and Union Bank of India, launched their QIPs. While Bank of Maharashtra raised Rs313.5 crore, Union Bank is looking to raise at least Rs1,000 crore with a green-shoe option of another Rs1,000 crore. In October, Dena Bank raised Rs400 crore through its QIP.
Shares of Syndicate Bank lost 2.03% on the BSE to close at Rs84.40, while the benchmark Sensex lost 0.68% or 227.8 points to close at 33,227.99 points.
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