IOB raises Rs 1,436 crore through QIP

CHENNAI: Public sector Indian Overseas Bank (IOB) has raised Rs 1,436 crore through qualified institutional placement (QIP). More than 62% of the total shares under the QIP process was allotted to LIC, IIFL, SBI Pension Fund Scheme and LIC Pension Fund Scheme.
The committee of directors of the bank at its meeting on Monday approved the allotment of 35.4 crore equity shares to eligible qualified institutional buyers (QIB) at the issue price of Rs 40.57 per equity share aggregating to Rs 1,436 crore pursuant to the QIP, IOB informed the stock exchange. Following this, the paid-up equity share capital of the bank has increased from Rs 189 billion to Rs 192 billion comprising 19,25,65,89,795 equity shares of Rs 10 each.
While the state-owned insurer LIC was allotted more than 12.3 crore shares accounting for 34.8% of the total equity share, it was followed by IIFL Finance with 4.9 crore shares at 13.9%. SBI Pension Fund Scheme and LIC Pension Fund Scheme were allotted nearly 2.5 crore shares each.
On Thursday, IOB launched the QIP process to raise Rs 2,000 crore to bring down the Centre's shareholding of 96.4% in the state-run bank in view of SEBI's norms that all listed companies should maintain a minimum public shareholding (MPS) of 25%.
“The base size of the QIP was Rs 1,000 crore and we have raised more than the base size. Another Rs 1,000 crore was a greenshoe, which was optional," IOB MD & CEO Ajay Kumar Srivastava told TOI. This will also push the Capital to Risk-Weighted Asset Ratio (CRAR) to more than 18% from the current 16.97%, he added.
The bank is likely to launch another QIP in the next fiscal (FY26). “The nod of bank's board was required for the purpose, which will decide on the value to be raised,” Srivastava further said.