Bank of India announced on December 5 the launch of its qualified institutional placement (QIP), set the floor price at Rs 105.42 per equity share. The bank's Capital Issue Committee is also slated to meet on December 8 to consider and determine the issue price, including any discount.
The public sector lender also mentioned that a meeting of the Capital Issue Committee is scheduled for December 8, 2023. During this meeting, discussions will be held regarding the issue price and any permissible discounts under the SEBI ICDR Regulations. Additionally, it has been highlighted that the determination of the Issue Price will be a joint effort between the Bank and the Book Running Lead Managers appointed for the QIP Issue.
"...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," Bank of India said in its stock exchange filing.
"...we wish to inform you that a meeting of the Capital Issue Committee is scheduled to be held on December 8, 2023 to, inter alia, consider and approve the issue price, including a discount, if any thereto as permitted under the SEBI ICDR Regulations, for the Equity Shares to be allotted to Qualified Institutional Buyers, pursuant to the Issue. The Issue Price will be determined by the Bank in consultation with the Book Running Lead Managers appointed for the QIP Issue," Bank of India also said in the filing.
As per an earlier report from CNBC TV-18, the QIP is anticipated to be in the range of Rs 3,500 to 4,000 crore. This comprises a base issue valued at Rs 2,000-2,500 crore and an additional greenshoe option of Rs 1,500 crore.
Bank of India reported a 52 percent rise in its net profit to Rs 1,458.43 crore in the second quarter of the current financial year, on the back of sharp improvement in asset quality and increase in margins. In the reporting quarter, the asset quality of the state-owned lender improved sharply with the gross non-performing assets (NPA) ratio standing at 5.84 percent.
In the trading session on December 5, the scrip settled at Rs 110.20 apiece at the NSE, which was 0.92 percent higher than the previous day's close.
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