Indian Bank gains on successfully raising Rs 1,650 crore from QIP issue

Indian Bank rose 1.39% to Rs 149.45 after the bank's committee of directors on capital raising yesterday 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 amount aggregating to Rs 1650 crore from eligible qualified institutional buyers. The issue, which opened on 21 June 2021, comprised of sale of 11,60,74,569 equity shares of the bank.

The committee has determined and approved the issue price of Rs 142.15 each for the equity shares to be allotted to the eligible qualified institutional buyers in the issue.

In its placement document filed with the bourses, Indian Bank said that it intends to utilize the net proceeds towards augmenting our bank's Tier I Capital to meet the Basel III and to support growth plans and to enhance the business of the bank and for general corporate requirements or any other purposes, as may be permissible under the applicable law and approved by the bank's board or its duly constituted committee.

Indian Bank is a public sector bank. The Government of India held 88.06% stake in the bank as on 31 December 2020.

The bank reported a net profit of Rs 1,708.85 crore in Q4 FY21 as against a net loss of Rs 217.74 crore in Q4 FY20. Total income during the quarter increased by 68.1% YoY to Rs 10,647.87 crore.

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