Bank of India announces update on NCDs, stock advances 2%; check details

Shares of public sector lender Bank of India were in high demand on the bourses on Thursday, December 11, after the company announced that it has received an overwhelming response from investors for its non-convertible, taxable, subordinated, unsecured, fully paid-up Basel III-compliant Tier II Bonds Series XVIII, in the nature of debentures.

 

Following the news, the bank's stock price rose 2.05 per cent to log an intraday high of ₹141 per share, merely ₹10 shy of the 52-week high of ₹151.05 per share scaled earlier last month on November 26 on the NSE. The scrip has recovered around 57 per cent from its 52-week low of ₹90.05 recorded earlier this year on January 13.

 

Buying interest persisted through the morning trade. At 9:54 AM, the public sector lender’s shares were trading at ₹140.36, up 1.59 per cent from the previous close of ₹138.16. In comparison, the benchmark Nifty 50 was trading 42 points higher, or 0.16 per cent, at 25,716.

 

A combined total of 1.85 million shares of Bank of India, worth around ₹25.88 crore, have exchanged hands in today’s session so far on the BSE and NSE.

Bank of India announces update on NCDs

The public sector lender has announced that it received total bids worth ₹4,982 crore, an overwhelming response from investors, and the issue was oversubscribed 4.98 times against the base issue size. Further, the bank has decided to accept bids worth ₹2,500 crore at a coupon rate of 7.28 per cent.

 

Earlier, the bank had announced a Basel III-compliant Tier II Bonds amounting to ₹2,500 crore (including a base size of ₹1,000 crore and a green-shoe option of ₹1,500 crore). The base issue size of ₹1,000 crore plus the green-shoe option of ₹1,500 crore aggregates to ₹2,500 crore.

 

The bond issue was opened on December 10. The bank received a total of 68 bids and has accepted 29 of them. The allotment is expected to be finalised tomorrow, Friday, December 12.