Bank of Maharashtra raises ₹1,000 cr via QIP, LIC gets biggest allocation
Among institutional bidders who have been allotted more than 5% of the shares within the QIP include LIC, which has been allotted 8.34 crore shares or 23.77% of the total approved shares within the QIP
PremiumBank of Maharashtra (BoM) Wednesday said it has raised ₹1,000 crore through Qualified Institutional Placement (QIP). The QIP which opened on June 1, closed yesterday.
The bank in a statement said, “Board of Directors of the Bank approved the allotment of 350,877,192 equity shares to eligible qualified institutional buyers at the issue price of ₹28.50 per equity share (including premium of Rs. 18.50 per share), aggregating to ₹10,000 million (Rupees Ten Thousand Million only) under the SEBI ICDR Regulations."
The issue price has been set at ₹28.5 per equity share, which is a 4.94% discount to the floor price of ₹29.94 per share.
Pursuant to the allotment of equity shares in the QIP, the paid – up equity share capital of the bank stands increased to 70,813,736,390, consisting of 7,081,373,639 equity shares of face value of ₹10 each, the bank said.
Among institutional bidders who have been allotted more than 5% of the shares within the QIP include Life Insurance Corporation of India, which has been allotted 8.34 crore shares or 23.77% of the total approved shares within the QIP.
Others who have been assigned shares in excess of 5% include Aditya Birla Sun Life Insurance Co. Ltd (4.50 crore shares or 12.84%), Bajaj Allianz General Insurance Co. Ltd.( 3.67 crore shares or 10.46%), Rajasthan Global Securities Pvt. Ltd (2.50 crore shares or 7.13%), and Societe Generale – ODI (2.24 crore or 6.41%).
The QIP was fully subscribed and received a strong response from domestic as well as foreign institutional investors.
Currently, the Centre holds a 90.97% stake in the Bank of Maharashtra. The QIP will help bring down the government holding in the bank.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
