Bank of India launches share sale to institutional investors (updated)

Bank Of India

05/12/2023 13:22

(Recasts, adds details from company statement)
       MUMBAI, Dec 5 (Reuters) - State-run Bank of India
 BOI.NS  on Tuesday launched a share sale to institutional
investors, with fixed-income news service IFR reporting that the
lender plans to raise up to 45 billion rupees ($539.65 million).
    Bank of India's first qualified institutional placement
(QIP) of shares since 2021 opened earlier in the day at a floor
price of 105.42 rupees apiece, the lender said in a filing. 
        It did not immediately give further details on the size
of the issue.
  
        The share sale comes at a time when stocks of Indian
state-owned lenders  .NIFTYPSU  have touched record highs. 
  
        The Nifty PSU Bank index and Bank of India are up 25%
each so far this year.
        Bank of India ended 0.9% higher on the day.
  
    The base size of the issue will be 22.5 billion rupees with
an option of oversubscription of the same amount, IFR reported
earlier in the day, citing people with knowledge of the
transaction.
    Lead managers to the issue include BNP Paribas, BOI Merchant
Bankers, DAM Capital, IDBI Capital, IIFL Capital, Nuwama Wealth
and SBI Capital Markets, according to the report.
    State-run peer Union Bank of India  UNBK.NS  in August
raised 50 billion rupees through a QIP.
    Bank of India had raised 25.50 billion rupees through a QIP
in August 2021.

($1 = 83.3875 Indian rupees)

 (Reporting by Siddhi Nayak and Chris Thomas; Editing by Sohini
Goswami)
 ((Siddhi.Nayak@thomsonreuters.com; +91 22 6921 7848; Reuters
Messaging: Twitter: https://twitter.com/siddhiVnayak))