State-owned Indian Bank on Monday launched its qualified institutional placement (QIP) of shares to raise around Rs 4,000 crore.
In March this year, the committee of directors had accorded approval for raising equity capital aggregating up to ₹4,000 crore through QIP in one or more tranches.
The committee approved the floor price for the QIP at Rs 142.15 per equity share. Floor price is the minimum price set for an issue, below which an offer cannot be made.
The bank may, in accordance with the special resolution of the shareholders, at its discretion offer a discount of up to 5 per cent on the floor price in the QIP.
Further, a meeting of the committee is scheduled to be held on June 24, 2021 to consider and approve the issue price, including a discount for the equity share to be allotted to eligible qualified institutional buyers (QIBs), pursuant to the QIP, it said.
Market Cap of Indian Bank is Rs 17.05TCr. The bank stock has given returns of 134% in the past year. The Bank’s dividend yield stands at 1.32%.
In comparison to the Nifty Midcap 100, which returned 43.17 percent over three years, the stock returned -57.79 percent.
Impact on Stock Market
On Tuesday, Indian Bank’s stock jumped more than 3% after the bank announced the commencement of its qualified institutional placement program (QIP).
Shares of Indian Bank were trading at Rs 151.05, up 3.82% on NSE at 10.24 am IST. IT touched an intra-day high of Rs 153.30 during the trade.
(with inputs from good reuters)