State run Bank of Baroda on Thursday said in a notice to exchanges that its board has approved raising upto ₹4500 crore from institutional investors through a so-called qualified institutional placement.
Issue Size
The issue size is Rs 4,500 crore with the option to upsize up to an additional Rs 2,000 crore.
Floor Price
The floor price of the qualified institutional placement is fixed at ₹85.98 per share. It is 4.36% discount to its Thursday’s closing price.
Use of Fund
The bank in its offer document said that the proceeds from the issue will be used to augmenting its tier 1 capital to meet the bassel III and to support growth plans and to enhance the business of the bank.
Company’s Financial
As of December 2020, the lender’s tier I capital ratio stood at 10.57% while its tier II capital ratio was at 2.36%.
Gross non performing assets fell 8.48% in the December quarter against 10.43% a year ago.
On January 27 reported a consolidated net profit of Rs 1,159.17 crore for the third quarter ended December 31, 2020.
Intermediaries
Investment banks ICICI Securities, Axis Capital, BNP Paribas are managing the share sale.
Impact on Stock Market
Shares of the lender closed at Rs 89.95 per share on the NSE on February 25.
Statement from Bank
The committee of the bank at a meeting held on Thursday authorised the opening of the QIP issue and approved the floor price at Rs 85.98 per equity share.
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