Bank of Maharashtra fixes floor price at ₹24.89 per share for ₹2,000 cr QIP
PremiumThe bank may at its discretion offer a discount of not more than 5% on the floor price so calculated for the issue
New Delhi: State-run Bank of Maharashtra (BoM) on Tuesday said the board has fixed floor price of ₹24.89 per share for the proposed ₹2,000 crore qualified institutional placement (QIP).
The committee of board has approved floor price of ₹24.89 per share, BoM said in a regulatory filing.
The bank may at its discretion offer a discount of not more than 5 per cent on the floor price so calculated for the issue, it said.
In April this year, the Pune-based lender had received board approval to raise ₹5,000 crore by way of QIP/rights issue/ preferential issue or by issuing Basel III bonds.
Last month, the bank's Managing Director and CEO, A S Rajeev, had said the base size of the issue would be ₹1,000 crore with green-shoe option of another ₹1,000 crore.
Following this equity raise, the government's holding in the bank will reduce to below 85 per cent from 94 per cent currently, and the capital adequacy ratio will improve to 17-18 per cent from around 14.49 per cent as of March 31, 2021, he had said.
This fund will be deployed for expansion of the loan book, which the bank is looking to grow by 16-18 per cent to around ₹1.25 lakh crore in this fiscal from ₹1.08 lakh crore as of March 31, 2021, he said.
The Pune-based bank has managed to bring its gross non-performing assets to 7.23 per cent as of March 31, 2021, from 18.64 per cent in September 2018, when it was under PCA. Net NPAs stood at 2.48 per cent as of March 31, 2021.
MINT PREMIUM
See All
At present, market capitalisation of the bank stands at ₹17,500 crore against ₹3,948 crore as of March 2019, he said.
In FY22, the bank is targeting to bring down gross NPA to below 6 per cent and net NPA to below 2 per cent. Net interest margins (NIM) will remain above 3 per cent in this fiscal, he had said.
It has set a recovery and upgradation target of ₹2,500-2,600 crore during the current year. The lender is also expecting ₹500 crore recovery from written-off accounts in this fiscal, Rajeev had said.
The lender is looking at opening 200 banking outlets with a hub and spoke model in this fiscal.
This story has been published from a wire agency feed without modifications to the text.
Never miss a story! Stay connected and informed with Mint. Download our App Now!!