Bank of India announces closure of QIP

The state-run bank approved the QIP issue price at Rs 62.89 per equity share.

The state-run bank said that its capital issue committee on Monday (30 August 2021) approved the closure of qualified institutions placement (QIP) issue.

The committee has determined and approved the issue price of Rs 62.89 per share for the equity shares to be allotted to the eligible qualified institutional buyers in the issue. The issue price is at a 4.99% discount to the floor price of Rs 66.19 per share.

The bank will issue 40,54,71,866 equity shares of face value Rs 10 each at a price of Rs 62.89 per equity share. The gross proceeds from the issue are aggregating to approximately Rs 2550 crore. The net proceeds from the issue, after deducting fees, commissions and expenses of the issue from the aggregate proceeds of the issue, are approximately Rs 2530.27 crore.

The bank intends to use the net proceeds from the issue for enhancing its capital adequacy, in accordance with regulatory requirements and towards augmenting its Tier-I Capital to support anticipated growth in risk weighted assets and other plans and strategies approved by the board or its duly constituted committee.

Separately, the bank informed that the Central Government has extended the term of office of P R Rajagopal, executive director of bank for a period of two years beyond his currently notified term which expires on 28 February 2022,or until further orders, whichever is earlier.

Bank of India is a public sector bank. The Government of India held 90.34% stake in Bank of India as on 30 June 2021.

The bank reported 14.7% fall in standalone net profit to Rs 720 crore on a 2% decline in total income to Rs 11,698.13 crore in Q1 FY22 over Q1 FY21.

The scrip shed 0.66% to currently trade at Rs 67.55 on the BSE. On a year-to-date (YTD) basis, the stock has added 38.95% while the benchmark Sensex has advanced 19.56% during the same period.

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