Indian Bank issues a Rs 4,000 crore QIP; shares might increase

 Indian Bank issues a Rs 4,000 crore QIP; shares might increase

Indian Bank issues a Rs 4,000 crore QIP; shares might increase

The floor price for the QIP has been fixed by the board of Indian Bank at Rs 414.44 per share, which represents a 5.5% reduction from the NSE closing price of Rs 437.20 on December 12.

A base issue amount of Rs 2,250 crore is included in the Indian Bank QIP, with the possibility of an expansion to Rs 1,500 crore.

On December 13, Indian Bank shares are anticipated to start higher after the public sector lender announced the beginning of its qualified institutional placement (QIP), which aims to fund up to crore. The minimum price per share for the issuance has been set by the bank's board at Rs 414.44.

On December 15, the bank's capital raising committee, the committee of directors, will convene to discuss and approve the issue price of equity shares that will be distributed to qualified institutional buyers (QIBs).

The Indian Bank QIP has a Rs 2,250 crore base issue amount that may be increased to Rs 1,500 crore. The suggested price of shares in the QIP may be Rs 394 per share, which represents a reduction of around 10% and nearly 5% below the floor price of Rs 414.44 set by the Securities and Exchange Board of India (SEBI). On December 12, the price closed at Rs 437.

A qualified institutional buyer may purchase stocks from a listed business in India via the QIP procedure, which eliminates the requirement for a public offering and allows the firm to obtain funds.

August saw the approval of the QIP. Axis Capital, IIFL Securities, ICICI Securities, Emkay Global, and SBI Capital are the book-running managers for the QIP.

Following the Rs 4,500 crore offer from Bank of India and the Rs 750 crore offering from Jammu & Kashmir Bank is Indian Bank's QIP.

On December 12, Indian Bank's shares finished at Rs 437.20 on the National Stock Exchange (NSE), up more than 1%. This year, the stock has returned almost 47%, surpassing the gains of the benchmark Nifty 50, which has increased by around 15%.

The promoters owned 79.86 percent of Indian Bank as on September 30. In the July-September quarter, foreign institutional investors grew their ownership in the government lender from 4% to 4.33%.

Additionally, mutual funds raised their investment from 7.89 percent in the first quarter of the fiscal year to 8.01 percent in the second.