Bank of Maharashtra slips 7% as new shares allotted to QIBs get listed

Shares of Bank of Maharashtra dropped 7 per cent to Rs 28.16 in Friday’s intra-day trade, amid heavy volumes, after the new shares allotted to qualified institutional buyers (QIBs) got listed. The stock of state-owned bank fell below its issue price of Rs 28.5 allotted through qualified institutional placement (QIP).

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At 10:11 am; the stock quoted 6 per cent lower at Rs 28.44, as compared to 0.01 per cent decline in the S&P BSE Sensex. The average trading volumes on the counter jumped 1.5 times. A combined 29 million shares changed hands on the NSE and BSE.
 
The board of Bank of Maharashtra on Tuesday, June 6, 2023 allotted 350.88 million equity shares of Rs 10 each to QIBs pursuant to QIP. The bank raised Rs 1,000 crore through QIP, which opened on June 1 and closed on June 6, 2023.

The QIP was fully subscribed and received a strong response from domestic as well as foreign institutional investors, highlighting a well-diversified representation and demand from across the globe.

Life Insurance Corporation of India allotted 83.41 million shares or 23.77 per cent of total QIP size, Bank of Maharashtra said in exchange filing. Moreover, Aditya Birla Sun Life Insurance Company (45.04 million shares) and Bajaj Allianz General Insurance Company (36.70 million shares) have allotted over 10 per cent of total issue size.

The Bank intends to utilise net proceeds towards augmenting Bank’s Tier I Capital to meet additional requirement on account of capital conservation buffer and to support growth plans and to enhance the business of the bank.