homebusiness Newscompanies NewsBank of Maharashtra launches QIP — Fixes floor price at Rs 29.98 per share
Bank of Maharashtra launches QIP — Fixes floor price at Rs 29.98 per share
Bank of Maharashtra's board will meet again on June 6, to determine the issue price of the QIP, as well as the equity shares to be allotted to the Qualified Institutional Buyers, pursuant to the issue.
Pune-based state-run lender Bank of Maharashtra Ltd. launched a Qualified Institutional Placement (QIP) issue on Thursday, June 1 to raise funds from institutional investors. Quantum of the fund raise has not been determined.
This also confirms a CNBC-TV18 newsbreak on Thursday, where it reported citing sources that the lender plans to raise up to Rs 1,000 crore through the issue with a base size of Rs 500 crore and a potential greenshoe option of a similar quantum.
Floor price of the issue has been fixed at Rs 29.98 per share, which is a discount of 5 percent from Thursday's closing price. The bank, at its discretion, may also offer a discount of not more than 5 percent on the floor price of the issue.
The issue price will be determined by the lender in consultation with the book running lead manager appointed for the issue.
Bank of Maharashtra's board will meet again on June 6, to determine the issue price of the QIP, as well as the equity shares to be allotted to the Qualified Institutional Buyers, pursuant to the issue.
"After the capital infusion of about Rs 4,500 crore by government in 2018, the balancesheet has been cleaned up and the last three years have seen an excellent improvement in performance," Market Expert Ambareesh Baliga told CNBC-TV18 on Thursday. "So I am expecting an EPS of about Rs 5.5 in FY25 and adjusted book value of about Rs 32 with a target of Rs 42 for the stock in long term," he said.
Shares of Bank of Maharashtra had ended 3.5 percent higher on Thursday post the CNBC-TV18 newsbreak. The stock is flat on a year-to-date basis but is among the top performing PSU banks over a 12-month period with gains of nearly 80 percent.
First Published: Jun 2, 2023 5:22 AM IST
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