Bank of India share price: Bank of India approves Rs 3,000 cr QIP, sets floor price at Rs 66.19 per share

New Delhi: State-owned on Wednesday permitted the launch of QIP, geared toward elevating Rs 3,000 crore fairness capital to fund enterprise progress and meet regulatory compliance. The capital situation committee of the financial institution at its assembly permitted and adopted the preliminary placement doc cum utility kind for the difficulty and authorised the opening of the difficulty on Wednesday (August 25, 2021), Financial institution of India mentioned in a regulatory submitting.

The lender has set the ground worth for the certified institutional placement (QIP) at Rs 66.19 per fairness share.

It held a non-deal roadshow from August 10-23 to woo traders, wherein as many as 26 entities participated, together with Sure Financial institution, IDFC Financial institution, HDFC Treasury, ICICI Prudential Life, Edelweiss, SBI Life, Mirae, Kotak Life, Federal Financial institution, Marshal Wace and Polunin.

The financial institution mentioned it could provide a reduction of no more than 5 per cent on the ground worth to the subscribers of the difficulty.

The following assembly of the capital situation committee of the financial institution shall be held on August 30 to think about and decide the difficulty worth of shares to be allotted underneath the QIP, the financial institution mentioned.

The financial institution goals to gasoline its common enterprise progress, other than deploying capital for enhancing the technical platform, co-lending digital operations, tie-ups with fintech firms, and synchronization of tech platform with abroad and home operations.

Additionally, the federal government’s shareholding within the financial institution at current is in extra of 90 per cent. With the issuance of fairness shares by means of the QIP, the promoter’s stake will come right down to a considerable degree.

This may assist the financial institution meet the regulatory compliance with Sebi tips of sustaining minimal public shareholding shall be ensured.

The scrip of the financial institution closed at Rs 64.90 apiece on BSE, up 2.04 per cent from the earlier shut.