State-owned Bank of India on Friday (December 8) said its qualified institutions placement (QIP) has garnered an oversubscription of 4.11 times.
The public sector bank aimed to raise ₹4,500 crore through the QIP, with a base issue size of ₹2,250 crore and a green shoe option of ₹2,250 crore.
"...we wish to inform you that the issue of equity shares under Qualified Institutions Placement of ₹4,500 crore (base issue size of ₹2,250 crore and green shoe of ₹2,250 crore) by Bank of India has been oversubscribed by 4.11 times. Bank received 104 bids aggregating to ₹18,483.30 crore," the bank said in a regulatory filing.
In response to the offering, the bank received an impressive total of 104 bids, aggregating to a substantial ₹18,483.30 crore, reflecting robust demand from institutional investors.
The bank's determined and approved issue price stands at ₹100.20 per equity share, inclusive of a premium of ₹90.20 to the face value of ₹10 per equity share. Notably, this issue price represents a discount of 4.95% (₹5.22 per equity share) to the floor price of ₹105.42 per equity share.
What is QIP?
The QIP is a method by which listed companies in India can raise capital by issuing equities or other equity-convertible securities to qualified institutional buyers. The method lets a company not dilute its management stake and not repeat paperwork as it did during its initial public offering (IPO).
Shares of Bank of India Ltd ended at ₹114.30, up by ₹0.70, or 0.62% on the BSE.
