Bank of India Plans To Generate Rs 4,500 Cr Through QIP
On 5 December, the government-owned Bank of India announced the initiation of a qualified institutional placement (QIP) with a floor price set at Rs 105.42 per equity share. This marks the bank's first QIP launch since 2021. The regulatory filing to stock exchanges stated, "Approved the floor price of the Issue, being Rs. 105.42 per equity share ("Floor Price") based on the pricing formula as prescribed under Regulation 176 of the SEBI ICDR Regulations."
A Capital Issue Committee meeting is scheduled for 8 December 2023, where discussions will occur regarding the issue price and permissible discounts under SEBI ICDR Regulations. The issue price determination will be a collaborative effort between the bank and the book running lead managers appointed for the QIP Issue, as mentioned in the exchange filing.
BNP Paribas, BOI Merchant Bankers, DAM Capital, IDBI Capital, IIFL Capital, Nuwama Wealth and SBI Capital Markets are the lead managers for the issue, according to a media report.
The share sale aligns with a period when stocks of Indian state-owned lenders have reached record highs, with the Nifty PSU Bank index and Bank of India both registering a 25 per cent increase so far this year.
Bank of India reported a 52 per cent increase in standalone net profit for Q2FY24, reaching Rs 1,458 crore compared to the same period the previous year. The state-owned bank's net interest income (NII) for Q2FY24 rose by 13 per cent, reaching Rs 5,740 crore from Rs 5,083 crore in the corresponding quarter of the previous fiscal year.
