BoI plans to take QIP route to infuse Rs 3,000 cr equity

“The bank is in the process of raising Rs 3,000 crore through QIP and seven book running lead managers have been appointed for the proposed issue,” sources privy to the development said. A non-deal roadshow to woo investors concluded on Monday. The management of the bank participated in one-on-one and group meetings for the roadshow during August 10-23, 2021, the bank said in a filing.

Total 26 investors participated in the roadshow including Yes Bank, IDFC Bank, HDFC Treasury, ICICI Prudential Life, Edelweiss, SBI Life, Mirae, Kotak Life, Federal Bank, Marshal Wace, Polunin among others, the bank said.

The purpose of the issue is not only to fuel regular business growth, but also to deploy capital for improving technical platform of the bank, co-lending digital operations, tie-ups with fintech companies, and synchronisation of tech platform with overseas and domestic operations, as per the sources. The bank will also use the proceeds for developing app based retail loan applications and offer electronic bill discounting facility. . “Also, Government of India, our promoter is currently holding 90.34 pc stake in the bank as of June 30, 2021. With the proposed QIP of Rs 3,000 cr, the promoter’s stake will come down to a substantial level and as a result, the compliance with Sebi guidelines of maintaining minimum public shareholding will be ensured,” a source said.