Bank of Maharashtra raises Rs 1,000 crore via QIP

State-owned Bank of Maharashtra (BoM) on Wednesday said it has raised Rs 1,000 crore through Qualified Institutional Placement (QIP).

The QIP opened on June 1 and closed on June 6, 2023.

The board of the bank had approved the issuance of equity shares to Qualified Institutional Investors at the rate of Rs 28.50 per unit (with premium of Rs 18.50 per share), BoM said in a statement.

The QIP was fully subscribed and received a strong response from domestic as well as foreign institutional investors, highlighting a well-diversified representation and demand from across the globe.

The capital raised through QIP will not only strengthen capital adequacy ratio of the bank but also support growth, it said.

It will also help meet minimum public shareholding (MPS) norms of market regulator Sebi.

As per Sebi norms, listed entities are required to have at least 25 per cent public shareholding.

Currently, the government of India holds a 90.97 per cent stake in the bank. The QIP will help bring down the government holding in the bank.