Bank of India QIP subscribed 4.11 times; lender raises Rs 4,500 crore

Bank of India received an overwhelming response for its qualified institutional placement of shares, which was subscribed 4.11 times. The QIP included a base size of Rs 2,250 crore, with a greenshoe option of another Rs 2,250 crore in case of an oversubscription.

The lender received a total 104 bids aggregating up to Rs 18,483 crore, it said in an exchange filing. The state-owned lender allotted shares to qualified institutional buyers at Rs 100.20 a share, a discount of nearly 5% to the floor price of Rs 105.42.

In April, the bank had received board approval to raise Rs 4,500 crore either through a QIP or rights issue or via additional Tier-1 bonds. The lender also received approval to issue Basel-III compliant Tier-2 bonds up to an amount of Rs.2,000 crore.

As of September-end, the capital adequacy ratio of the bank was 15.63%, with the CET-1 capital at 12.60%. For the September quarter, the bank reported a 52% year-on-year (YoY) growth in net profit to Rs 1,458 crore. The net interest income grew by 13% on year to Rs 5,740 crore.

Shares of the lender have given nearly 30% returns to investors year-to-date, while on a three-year basis, it has gained more than 116%.

On Friday, shares of the bank ended 0.5% up on the National Stock Exchange at Rs 114.30.

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