large scale image
LCP Image

Back to TSCFM News

Bank of Maharashtra to raise ₹1,000cr via QIP route

March 03, 2023

Bank of Maharashtra to raise ₹1,000cr via QIP route
Bank of Maharashtra is all set to raise ₹1,000 crore through a qualified institutions placement (QIP) issue along with a greenshoe option of ₹500 crore, said public sector lender’s MD and CEO, A S Rajeev. 

The bank’s capital adequacy is at comfortable 17.53% without including this year’s profit and if this is added, the CAR would be at 19%, he said. 

The issue is primarily to comply with SEBI guidelines. With this round of capital raise, the government holding in the PSU bank will be down to 85%, Rajeev said.

As per the SEBI minimum public shareholding norms, the bank has to have at least 25% public shareholding and the Bank of Maharashtra (BoM) said they would meet this norm on schedule by March 2024. The government’s stake in the bank at present is at 90.97%.
 
The bank will be raising the funds this month. They will be waiting for the market to become more stable and look at concluding the fundraising before the month ends, the BoM MD said. 
 
In FY23, the bank raised capital in three rounds with an AT1 bond issue of ₹710 crore in September and ₹880 crore in December, taking total Tier-I capital to ₹1,590. They raised capital via a Tier-II bond issue of ₹348 crore in December. 

Important Links:

Recommended for you ...

Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services
Modi, Mauritius, and Sri Lanka Leaders Unveil Digital Payment Services

February 12, 2024

Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices
Public Sector Banks Surpassing Private Peers, Investors Reconsidering Choices

February 12, 2024

Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices
Indian Banks Seek RBI Permission for Global Bond Trading Ahead of Inclusion in Indices

February 12, 2024

Enquire Now
REQUEST A CALLBACK
Chat on WhatsApp