Bank of Maharashtra raises over Rs 403 crore from QIP issue

Bank of Maharashtra said that a special committee the board yesterday (16 July 2021) approved closure of qualified institutions placement (QIP) issue.

The committee approved the closure of the issue subsequent to the receipt of application forms for an aggregate of 17,03,37,546 crore shares of the bank and the funds of Rs 403.70 crore in the escrow account from eligible institutional buyers.

The committee has determined and approved the issue price of Rs 23.70 per share for the equity shares to be allotted to the eligible qualified institutional buyers in the issue. The issue price is at a 4.78% discount to the floor price of Rs 24.89 per share.

The issue opened on 13 July 2021 and closed on 16 July 2021.

The bank has allotted 50% of total shares issued to Life Insurance Corporation of India. Further, State Bank of India, Punjab National Bank, Central Bank of India, Bank of India, Indian Bank and Union Bank of India have each been allotted 6.19% shares of the total issue size.

Bank of Maharashtra said that it intends to utilize the net proceeds from the issue towards augmenting its 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.

Separately, the bank informed that its board will meet on Thursday, 22 July 2021, to consider and approved the financial results for the first quarter ended 30 June 2021.

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.

The scrip shed 0.62% to end at Rs 24 on the BSE on Friday.

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