Bank of India (BoI) is likely to fix the floor price for the QIP (qualified institutional placement) issue at Rs 359 per share. The bank intends to raise around Rs 1,350-1,400 crore through the QIP.
Making a formal announcement to this effect during a media meet in Mumbai on Thursday, TS Narayanasami, CMD said that his bank was also charge premium for the QIP.
The bank has appointed seven merchant banks-SBI Cap, JM Financial, AK Capital, Kotak, HSBC Securities, Edelweiss and Motilala Oswal- to arrange the funds.
The bank will go for capital infusion by issuing 3,77,72,600 new equity shares. The bank plans to raise equity capital aimed meeting the increased capital requirements under Basel-II norms. The fresh capital will also take care of growth of the bank?s loan book during 2007 and also business expansion in the coming years.
As per the approval given by the bank?s board at its meeting held on December 27 it will be diluting the government?s holding in the bank?s shares by 5% from 69.47% to 64.47%. An extra ordinary general meeting of the bank in this connection will be held on 23 January.
Speaking about the bank?s growth plans, Narayanasami said, ?We are all set to achieve a balance sheet size of Rs 2,60,000 crore by March 2007 as we have already crossed the Rs 2,35,000 crore mark so far.?