Bank of India to raise ₹4,500 crore via QIP; floor price set at ₹105.4 per share

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Bank of India on Tuesday, December 5, announced the launch of a qualified institutional placement (QIP), set at a floor price of ₹105.42 per equity share. This is the bank's first Q1P launch since 2021. "...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," said Bank of India in a regulatory filing to the stock exchanges. Also Read: Bank of India hikes rates on these fixed deposits. How they compare with HDFC Bank, Yes Bank, SBI The public sector lender also said 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. 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, according to the exchange filing. Lead managers to the issue include BNP Paribas, BOI Merchant Bankers, DAM Capital, IDBI Capital, IIFL Capital, Nuwama Wealth and SBI Capital Markets, according to a report by news agency Reuters.

The share sale comes at a time when stocks of Indian state-owned lenders have touched record highs. The Nifty PSU Bank index and Bank of India are up 25 per cent each so far this year. Bank of India reported that its standalone net profit for the second quarter of the fiscal year 2023–24 (Q2FY24) went up by 52 per cent to ₹1,458 crore, from the same period last year.