Indian Bank dips 8% post listing of fresh shares issued to QIBs

Shares of Indian Bank dipped 8 per cent to Rs 141.90 on the BSE in intra-day trade on Tuesday on profit-booking as fresh shares allotted by the bank to qualified institutional buyers (QIBs) started trading on the exchanges today onwards. The stock has fallen below its qualified institutional placement (QIP) issue price of Rs 142.15 per share.

“A total of 116,074,569 equity shares of Rs 10 each allotted to QIBs pursuant to Qualified Institutional Placement (QIP) are listed and admitted for trading on the Exchange with effect from Tuesday, June 29, 2021,” BSE said in a notice on Monday, June 28, 2021.

On Friday, June 25, Indian Bank had informed the stock exchanges that it raised Rs 1,650 crore through QIP by allotting 116 million equity shares of the bank at an issue price of Rs 142.15 per share to QIBs.

Life Insurance Corporation of India (LIC) (20.66 million shares), SBI Life Insurance Company (13.78 million shares), SBI Mutual Fund and its various schemes (13.78 million shares) and Society Generale and its various schemes (11.31 million) were allotted over 10 million shares each, Indian Bank said.

The bank intends to utilise the net proceeds towards augmenting the bank’s Tier-I capital to meet the Basel III norms and to support growth plans and enhance the business of the bank, and/ or, general corporate requirements or any other purposes.

In the past six trading days, Indian Bank has outperformed the market and surged 11 per cent as compared to a 0.75 per cent rise in the S&P BSE Sensex till Monday.

At 10:07 am, the stock was down 6 per cent at Rs 145.11 per share, as against a 0.30 per cent decline in the benchmark index. A combined around 14 million equity shares had changed hands on the counter on the NSE and BSE so far.