Bank of Baroda Shares Gain 4% After Closing QIP issue

After closing the qualified institutional placement (QIP) issue, the state-run lender, Bank of Baroda rose 3.37 percent to touch Rs.86. This was conducted to raise up to Rs.4,500 crore.

Alongside, the capital raising committee has also permitted the closure of the QIP issue on 2 March 2021 pursuant to the receipt of application forms and the funds in the escrow account from eligible qualified institutional buyers. The issue opened on 25 February 2021.

Furthermore, the committee has also fundraising upto Rs.4,500 crore through an issue of equity shares through QIP route.

The committee allowed the issue price of Rs.81.70 per equity share (including a premium of Rs 79.70), which is at a concession of five percent (Rs.4.28 per equity share) to the floor price of Rs 85.98 apiece, Bank of Baroda (BoB) states in a regulatory filing.

It further adds that the confirmation of allocation note is to be sent to the eligible qualified institutional buyers, intimating them of allocation of equity shares pursuant to the issue.

BoB plans to use the net proceeds towards augmenting the bank's Tier I Capital to meet the Basel III and to provide growth plans and to boost the business of the bank and for general corporate requirements or any other purposes, as may be permissible under the applicable law as well as approved by its board or its duly constituted committee.

BoB reported a net profit of Rs.1,061.11 crore in Q3 FY21 compared with net loss of Rs 1,406.96 crore in Q3 FY20. Total income during the quarter decreased by 5.2 percent year-on-year (YoY) to Rs 20,664.23 crore.