Bank of Maharashtra launches QIP issue

Bank of Maharashtra announced that the issue committee of the board approved the opening of the qualified institutional placement (QIP) issue on 13 July 2021.

The scrip was up 0.82% at Rs 24.50 on the BSE. Over 4.09 lakh shares of the company were traded in the counter on the BSE so far as against an average trading volume of 10.48 lakh shares.

The floor price of the QIP issue is Rs 24.89 per equity share, the government-backed lender said in a regulatory filing. The floor price is set at a premium of 2.43% to Tuesday's closing price of Rs 24.30 per share.

The issue committee of the bank's board is scheduled to be held on Friday, 16 July 2021, to consider and determine the issue price, including a discount, if any, for the equity shares to be allotted to eligible qualified institutional buyers, pursuant to the QIP issue. The bank may, at its discretion, offer a discount of not more than 5% on the floor price.

In its draft placement document filed with the bourses, Bank of Maharashtra said that it intends to utilize the net proceeds towards augmenting the bank's Tier I Capital to meet additional requirement on account of capital conservation buffer and to support growth plans and to enhance the business of the bank or any other purposes, as may be permissible under the applicable law and approved by the board or its duly constituted committee.

Bank of Maharashtra is a public sector bank in India. The Government of India held 93.33% stake in Bank of Maharashtra as on 30 June 2021.

The bank's standalone net profit surged 186.7% to Rs 165.08 crore in Q4 FY21 from Rs 57.57 crore in Q4 FY20. Total income increased by 35.5% YoY to Rs 4,332.99 crore during the quarter.

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