Bank of Maharashtra opts for QIP to raise capital

Bank of Maharashtra with the approval from its board of directors has decided to go for Qualified Institutional Placement (QIP). Through QIP, the bank is planning to raise Rs 300 crore to boost its capital ratios.

The board of directors had approved the plan in the board meeting held on May 4, 2017. Shareholders also approved the same by way of special resolution passed at the AGM held on June 16, 2017. The Equity Issue Committee approved the opening of QIP in the meeting held on December 4, 2017.

The floor price prescribed in respect to QIP as per the SEBI guidelines is Rs 26.89 per equity share. The bank may at its discretion offer a discount of not more than 5 per cent on the floor price.

Also, if there is sufficiently strong demand, Bank has a so-called greenshoe option to raise a further Rs 200 crore. BOB Capital Markets Ltd and Equirus Capital Pvt. Ltd. would be managing the share sale.

The stock of Bank of Maharashtra closed at Rs. 26.15 on Monday. It opened at Rs 26.25 on Tuesday and made intra-day high of Rs 26.90 in the morning session, showing an upside of 2.9 per cent.