Bank of Maharashtra raises Rs 1,000 crore via QIP, LIC picks up biggest chunk

State-run Bank of Maharashtra closed its Qualified Institutional Placement (QIP) issue through which it has raised Rs 1,000 crore. For the QIP, the board approved the allotment of 35.1 crore shares to institutional buyers at its meeting on June 6. The shares were allotted at an issue price of Rs 28.5 per equity share, which is a 4.94 percent discount to the floor price of Rs 29.94 per share that was set at the time of the QIP launch on June 1.

The issue price is also at a 6.25 percent discount to the closing price of Bank of Maharashtra shares on Tuesday.

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Five institutional buyers were allotted more than 5 percent stake in the company. State-owned Life Insurance Corporation of India clenched the biggest chunk of the issue. The life-insurer was allotted 8.34 crore shares or 23.77 percent of the total approved issue size.

It was followed by Aditya Birla Sun Life Company, which bagged 4.50 crore shares or a 12.84 percent of the total QIP. Other major institutional buyers included Bajaj Allianz General Insurance Company, Rajasthan Global Securities, and Societe Generale.

Shares of the state-owned lender also reacted positively to the fund raise and at 09.32 am, were trading around 1 percent higher at Rs 30.65 on the National Stock Exchange.

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