Indian Overseas Bank raises Rs 1,436 crore, sells 35.41 crore equity shares
Originally, the bank had authorised a share sale to generate a total of Rs 2,000 crore.
Public-Sector lender, Indian Overseas Bank Ltd announced the closure of its Qualified Institutional Placement (QIP), while raising a sum of Rs 1,436 crore by selling 35.41 crore equity shares to eligible institutional buyers.
Originally, the bank had authorised a share sale to generate a total of Rs 2,000 crore. Eligible purchasers have bought shares at Rs 40.57 each, a 5% discount off the floor price of the QIP of Rs 42.7 a share and a 9% discount off the stock's Monday closing price.
The base size of the QIP was Rs 1,000 crore with an option to upsize it by another Rs 1,000 crore. Last Thursday, the lender started the institutional share sale. The QIP can result in a dilution of 1.87% of the total outstanding bank stock depending on the number of shares sold.
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Most of the QIP shares have been sold to India's largest insurance corporation, Life Insurance Corporation of India (LIC), and funds connected to it.
Shares have also been issued by funds linked to India's largest fund house, SBI Mutual Fund. Generally notified to the exchanges, no significant foreign fund house has been issued more than 5% of the QIP shares on offer.
Shares of Indian Overseas Bank are trading low by 3.60% at Rs 42.85. The stock is down 41% from its recent 52-week high of Rs 75.55.
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