Bank Of Maharashtra Launches QIP To Raise Up To Rs 3,500 Crore

Bank of Maharashtra announced on Monday the launch of its qualified institutional placement to raise up to Rs 3,500 crore. The public sector lender has fixed a floor price of Rs 60.37 per share for the QIP.

The issue committee of the bank's board has "approved the opening of the issue on 30.09.2024", an exchange filing stated. The floor price is marginally higher, by 0.13%, as against the stock's current market price.

"The bank may at its discretion offer a discount of not more than 5% on the floor price so calculated for the issue," the filing added.

As per the terms viewed by NDTV Profit, Bank of Maharashtra is looking to raise up to Rs 1,750 crore through the base issue, and another Rs 1,750 crore through a greenshoe option.

The indicative issue price is Rs 57.36 per share, which would mark a discount of 4.86% against the current market price. The lender is looking to offload up to 8.6% stake or 61 crore shares through the QIP.

Notably, the bank's board had approved the plan to raise Rs 7,500 crore during the current financial year through various modes in a meeting held on April 26.

This was followed by the bank's shareholders giving their nod to the fundraising plan on June 12. The modes of raising the funds, as agreed to by the shareholders, included "FPO/rights issue/QIP issue/on preferential basis/ESPS, etc., aggregating to Rs 7,500/- crore,"  an exchange filing had then noted.