New Delhi: Public sector lender Bank of India has approved Qualified Institutional Placement (Bank of India QIP) to raise Rs 3,000 crore. The bank will use the funds raised from the QIP for business growth and to meet regulatory requirements. The Bank’s Capital Issue Committee has approved this QIP. Bank of India has fixed the share price for the QIP at Rs 66.19 per equity share.
Subscribers can get up to a 5% discount
Bank of India also recently conducted a roadshow to attract investors for QIP. It was attended by 26 entities. These included Yes Bank, IDFC Bank, HDFC Treasury, ICICI Prudential, Edelweiss, and Federal Bank. The bank says that it can offer up to a 5 percent discount on the price to the subscribers of the issue. This fund will help the bank to drive business growth, improve technology, and partner with fintech companies.
The government’s share in BOI will decrease after QIP
The government currently holds more than 90 percent stake in the Bank of India, which will come down significantly after the QIP. The bank has said that the next meeting of the Capital Issue Committee will be held on August 30. In this, the issue price of the shares to be allotted under the QIP will be considered. Let us tell you that for the last year, along with the IPO, there is an outflow of QIP in the market. Their issue is also getting a strong response. Companies, banks, or financial institutions bring QIP to raise capital. Under this, shares are issued to Institutional Investors.
