State-owned Bank of India on Wednesday approved the launch of QIP, aimed at raising Rs 3,000 crore equity capital to fund business growth and meet regulatory compliance.
The capital issue committee of the bank at its meeting approved and adopted the preliminary placement document cum application form for the issue and authorised the opening of the issue on Wednesday (August 25, 2021), Bank of India said in a regulatory filing.
The lender has set the floor price for the qualified institutional placement (QIP) at Rs 66.19 per equity share. It held a non-deal roadshow from August 10-23 to woo investors, in which as many as 26 entities participated, including Yes Bank, IDFC Bank, HDFC Treasury, ICICI Prudential Life, Edelweiss, SBI Life, Mirae, Kotak Life, Federal Bank, Marshal Wace and Polunin.
The bank said it may offer a discount of not more than 5 percent on the floor price to the subscribers of the issue. The next meeting of the capital issue committee of the bank will be held on August 30 to consider and determine the issue price of shares to be allotted under the QIP, the bank said.
The bank aims to fuel its regular business growth, apart from deploying capital for improving the technical platform, co-lending digital operations, tie-ups with fintech companies, and synchronization of tech platform with overseas and domestic operations.
Also, the government’s shareholding in the bank at present is in excess of 90 percent. With the issuance of equity shares through the QIP, the promoter’s stake will come down to a substantial level. This will help the bank meet the regulatory compliance with Sebi guidelines of maintaining minimum public shareholding will be ensured.