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Bank of Maharashtra launches QIP

June 02, 2023

Bank of Maharashtra launches QIP
Bank of Maharashtra Ltd. launched a Qualified Institutional Placement (QIP) issue on Thursday, June 1 to raise funds from institutional investors. Quantum of the fund raise has not been determined.

This also confirms a CNBC-TV18 newsbreak on Thursday, where it reported citing sources that the lender plans to raise up to ₹1,000 crore through the issue with a base size of ₹500 crore and a potential greenshoe option of a similar quantum.
 
Floor price of the issue has been fixed at ₹29.98 per share, which is a discount of 5 percent from Thursday’s closing price. The bank, at its discretion, may also offer a discount of not more than 5 percent on the floor price of the issue.
 
The issue price will be determined by the lender in consultation with the book running lead manager appointed for the issue.
 
Bank of Maharashtra’s board will meet again on June 6, to determine the issue price of the QIP, as well as the equity shares to be allotted to the Qualified Institutional Buyers, pursuant to the issue.

“After the capital infusion of about ₹4,500 crore by government in 2018, the balancesheet has been cleaned up and the last three years have seen an excellent improvement in performance,” Market Expert Ambareesh Baliga told CNBC-TV18 on Thursday. “So I am expecting an EPS of about ₹5.5 in FY25 and adjusted book value of about ₹32 with a target of ₹42 for the stock in long term,” he said. 
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