Public sector player Bank of Maharashtra is considering raising up to Rs 2,000 crore via various routes including follow-on public offer and rights issue.
Public sector player Bank of Maharashtra is considering raising up to Rs 2,000 crore via various routes including follow-on public offer and rights issue. The proposal will be taken up at the annual general meeting to be held on June 16 in Pune, where the bank is based. In a regulatory filing the bank said the proposal will be placed before shareholders at the AGM meeting to raise equity through follow on public offer/rights issue/qualified institutional placement/preferential issue.
Consent of shareholders will be sought to create, offer, issue and allot equity shares, it said. “The bank had assesses a capital requirement of around Rs 2,000 crore for the financial year 2017-18. The required capital is proposed to be raised from market by way of FPO/rights issue/QIP/preferential issue including capital support from central government” it added.
The funds will be added to bank’s capital conservation buffer (CCB) as per Basel III requirements and also for annual business growth, the bank said. Stock of the bank closed 3.63 per cent down at Rs 31.90 on BSE.