The board of directors of Indian Bank approved raising additional long-term infrastructure bonds of up to Rs 5,000 crore. The approved additional funds will be raised over and above the Rs 5,000 crore already raised by the lender in fiscal 2025, according to an exchange filing on Thursday.
The funds will be raised in one or more tranches in the current or subsequent financial years, based on the requirements for funding the infrastructure and affordable housing, it said.
Earlier, the bank had invited bids to raise Rs 5,000 crore through the issue of 10-year infrastructure bonds. It includes a base value of Rs 2,000 crore and a greenshoe option of Rs 3,000 crore.
In the current financial year, the board of Indian Bank had approved raising up to Rs 12,000 crore by way of equity and debt.
Previously, in January 2021, the lender had raised Rs 2,000 crore through a Tier-II bond issue at a coupon of 6.18%.
Shares of Indian Bank closed 0.90% higher at Rs 530.95 apiece, compared to a 0.81% rise in the benchmark NSE Nifty. The stock has risen 24.41% in the last 12 months and 26.55% year-to-date. The relative strength index was 49.77.
Of the 11 analysts tracking the company, nine recommend a 'buy' and two suggest a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 22.9%.
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