Money & Banking

Bank of India to raiseup to ₹2,000 cr in Q4

Mumbai | Updated on October 29, 2019

Bank of India (BoI) is likely to tap the capital market to raise up to ₹2,000 crore in the fourth quarter of FY2020 via a qualified institutions placement (QIP) / follow-on public offer (FPO). The public sector bank said the issue size may vary based on various factors, including but not limited to management discretion and the decision of the shareholders.

BoI has initiated the work related to the appointment of book running lead manager and other intermediaries to prepare the requisite documents, and to undertake various activities in relation to the QIP / FPO.

In FY2019, the Government of India infused ₹14,724 crore capital into the bank in two tranches – at ₹105.75 per equity share in December 2018 aggregating ₹10,086 crore and at ₹89.60 per equity share in February 2019 aggregating ₹4,638 crore.

Further, the bank, under the Bank of India-Employee Stock Purchase Scheme (ESPS), raised ₹660.80 crore. Under this scheme, the bank has allotted 6.25 crore new equity shares having face value of ₹10 each at a discount of 24.28 per cent on the floor price of ₹105.64 per share – that is at an offer price of ₹80 each.

Non-core assets

Besides capital infusion by the government and raising monies via ESPS, the bank has also been undertaking monetisation of non-core assets to strengthen the capital base. During 2018-19, the bank realised ₹227 crore from the sale of non-core assets. During the current year, the bank aims is seeking to mop up more than ₹600 crore.

As of March-end 2019, the bank’s market share of aggregate domestic deposits was 3.33 per cent and its market share of aggregate advances 3.36 per cent.

Published on October 29, 2019

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