Bank of Baroda rose 3.37% to Rs 86 after the state-run lender said it has closed the qualified institutional placement (QIP) issue, which was conducted to raise up to Rs 4,500 crore.
The capital raising committee has approved the closure of the QIP issue on 2 March 2021 pursuant to the receipt of application forms and the funds in the escrow account from eligible qualified institutional buyers. The issue opened on 25 February 2021.
Last week, the committee had approved raising upto Rs 4,500 crore through an issue of equity shares through QIP route.
The committee approved the issue price of Rs 81.70 per equity share (including a premium of Rs 79.70), which is at a discount of 5% (Rs 4.28 per equity share) to the floor price of Rs 85.98 apiece, Bank of Baroda (BoB) said in a regulatory filing on Tuesday.
It added that the confirmation of allocation note is to be sent to the eligible qualified institutional buyers, intimating them of allocation of equity shares pursuant to the issue.
BoB intends to utilize the net proceeds towards augmenting the 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 its board or its duly constituted committee.
BoB reported a net profit of Rs 1,061.11 crore in Q3 FY21 compared with net loss of Rs 1,406.96 crore in Q3 FY20. Total income during the quarter decreased by 5.2% year-on-year (YoY) to Rs 20,664.23 crore.
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