Bank of Maharashtra is all set to raise Rs 1,000 crore through a qualified institutions placement (QIP) issue along with a greenshoe option of Rs 500 crore, said public sector lender’s MD and CEO, A S Rajeev.
The bank’s capital adequacy is at comfortable 17.53% without including this year’s profit and if this is added, the CAR would be at 19%, he said.
The issue is primarily to comply with SEBI guidelines. With this round of capital raise, the government holding in the PSU bank will be down to 85%, Rajeev said
As per the SEBI minimum public shareholding norms, the bank has to have at least 25% public shareholding and the Bank of Maharashtra (BoM) said they would meet this norm on schedule by March 2024. The government’s stake in the bank at present is at 90.97%
The bank will be raising the funds this month. They will be waiting for the market to become more stable and look at concluding the fundraising before the month ends, the BoM MD said.
In FY23, the bank raised capital in three rounds with an AT1 bond issue of Rs 710 crore in September and Rs 880 crore in December, taking total Tier-I capital to Rs 1,590. They raised capital via a Tier-II bond issue of Rs 348 crore in December.