Bank of India raises Rs 2,550cr through QIP route

Bank of India said that it has raised INR 2,550 crores by issuing over 40.5 crore shares to qualified institutional buyers in a qualified institutions placement (QIP).

The issue price of the shares in the QIP was INR 62.89 per share.

The QIP had opened on 25 August and had closed on 30 August 2021.

Bank of India was aiming to raise up equity capital of up to INR 3,000 crore via the QIP issue.

According to the Indian nationalized bank, three investors had subscribed to more than 5% of the equity offered. These include the Indian government-owned Life Insurance Corporation of India (LIC), Bajaj Allianz Life Insurance Company, and ICICI Prudential Life Insurance Company.

Bank of India raises Rs 2,550cr through QIP route. Photo courtesy of AroundTheGlobe/Wikimedia Commons.

LIC picked up over 159 million shares, which represents 39.22% of the total issue size.

On the other hand, Bajaj Allianz Life Insurance Company and ICICI Prudential Life Insurance Company subscribed to over 31.8 million shares each, which is 7.84% each of the total issue size.

Following the issuance of the QIP, the stake held by the Indian government in Bank of India has been reduced from 90.34% to 82.50%.

Bank of India stated: “Pursuant to the allotment of equity shares in the issue, the paid-up equity share capital of the bank stands increased from Rs 3,698.09 crore to Rs 4,103.57 crore comprising of 410,35,66,070 number of equity shares.”