Bank of Maharashtra Plans QIP, Aims to Raise Capital for Future Growth

2 Jun 2023 , 01:39 PM

Bank of Maharashtra has received board approval for a qualified institutional placement (QIP) of shares, with a floor price set at Rs.29.98 per share. The floor price represents a discount of 4.33% from the bank's Thursday closing price of Rs. 31.34 on the BSE.

The bank has not disclosed the exact amount of funds to be raised through the QIP in its announcement to the stock exchanges.

In April, the Bank of Maharashtra announced its plans to raise capital for the fiscal year 2023-24, aiming to secure up to Rs.7,500 crore through various methods, including follow-on-public offers, QIP, and preferential issues.

Bank of Maharashtra has recently emerged as the top-performing public sector lender regarding loan and deposit growth during the fiscal year 2022-23.

The bank's gross advances witnessed an impressive surge of 29.4%, reaching Rs.1,75,120 crore as of March 2023. BoM's robust financial performance is highlighted by a remarkable bottom-line growth of nearly 126%, with the bank's net profit soaring to Rs.2,602 crore during the fiscal year.

By initiating the QIP and raising substantial capital, the Bank of Maharashtra aims to strengthen its financial position and fuel its future growth prospects.

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