Bank of Maharashtra raises Rs 1,000 crore via QIP

State-owned Bank of Maharashtra raised capital of Rs 1000 crore at Rs 28.50 per equity share in qualified institutional placement (QIP).

The price was at a 4.94% discount to the floor price of Rs 29.94 per share. The QIP, which opened on June 1, was fully subscribed and received a strong response from domestic as well as foreign investors, the bank said. Life Insurance Corporation of India took up the biggest chunk of shares with an allotment of 8.34 crore shares, which is nearly 24% of the capital raised.

The capital raised through QIP will not only strengthen the capital adequacy ratio of the bank but also support growth, the bank said. This will also help the lender to reduce the government stake from 91%.


While publicly listed entities are mandated to have a minimum 25% public shareholding, several state-owned banks including Central Bank of India, IDBI Bank, Indian Overseas Bank and UCO Bank have over 90% promoter holding.