Bob Stock To Be Listed On 3 Ses Today
Bank of Baroda (BoB) equity shares will be listed at the Vadodara Stock Exchange, the Bombay Stock Exchange and the National Stock Exchange today. The shares are expected to be traded soon.
BoB, which made a Rs 850-crore equity issue in December 1996, had the distinction of having more than 3,13,000 shareholders, of which 3,00,000 investors were from the public and the employee categories. The price at which BoB trades will have a bearing on the issue of Bank of India.
The FIIs who backed out of the issue in the primary market are expected to buy the shares in the secondary market, which will keep the price buoyant. In fact, some of the FIIs are planning to give a 'buy' recommendation for the BoB scrip in their analyst's report.
According to a press release issued by the bank yesterday, the bank has been able to keep to the schedule of allotment as well as listing. The basis of allotment was completed and the refund orders had been posted within one month from the date of closure of the offer.
The bank has also received permission from the Reserve Bank of India to finalise allotments to the non-resident Indians, and the process of despatching share certificates to the NRI investors is also over.
The NRI shares are fully paid while the domestic shares are partly paid. There will be two types of quotes for the BoB shares-- one for the fully paid shares and another for partly paid shares.
The bank has already set up Investor's Service Cell at Baroda for servicing the shareholders with regard to timely despatch of refund orders. Most of the nationalised banks have agreed to grant advances against the Bank of Baroda shares.
After the bond and equity issues, BoB has overcome the capital adequacy constraints. Aggregate deposits of the bank up to January 17, 1997, increased by 11 per cent while credit has also picked up. Between end September 1996 and mid January 1997, the net credit by the bank increased by Rs 800 crore.
A good deposit growth and cut in cash reserve ratio coupled with lower credit offtake has lead to a position of excess liquidity for the bank, the release added.
The bank has deployed these funds in various instruments like the government securities and bonds and debentures of PSUs.