Bank of Maharashtra witnessed a 7.2 percent decline in its shares on Friday, June 9, a day after the lender announced that it successfully raised ₹1,000 crore through a Qualified Institutional Placement (QIP) of equity shares.
The QIP attracted several investors, including the Life Insurance Corporation of India (LIC) and Societe Generale.
During Friday’s trade, the stock opened at a price of Rs. 30 per share against the previous close of 30.35 and dipped further during the early trading session to touch an intraday low of Rs. 28.15 per share.
It was trading at ₹28.45, down by 6.26 percent, at 11:15 a.m. on the NSE.
The stock touched a 52-week high of Rs. 36.25 on December 15, 2022, and a 52-week low of Rs. 15 on June 20, 2022, indicating that at the current level, the stock is trading over 89 percent above its 52-week low and 21 percent below its 52-week high.
The stock has declined by almost 6 percent in the last one month. However, in the last six months, it has given a positive return of over 70 percent. Furthermore, the stock has increased by nearly 110 percent in the last five years.
The QIP was fully subscribed and has garnered a strong response from both domestic and foreign institutional investors, indicating a well-diversified representation and global demand.
The equity shares in the QIP were priced at ₹28.5 per share, representing a discount of 4.94% compared to the floor price of ₹29.94 per share.
Life Insurance Corporation of India, the largest insurer in India, has secured a significant portion of the shares in the QIP, being allotted 8.34 crore shares or 23.77 percent of the total approved shares.
In addition, other institutional bidders that have received an allocation exceeding 5 percent include Aditya Birla Sun Life Insurance Co. Ltd., Bajaj Allianz General Insurance Co. Ltd., Rajasthan Global Securities Pvt. Ltd., and Societe Generale - ODI.
Bank of Maharashtra, established in 1935, is an Indian public sector bank headquartered in Pune. The bank had 29 million customers across the country with 2022 branches as of March 2022. It has the largest network of branches of any nationalized bank in the state of Maharashtra, its website shows.