Indian Bank had raised a total of Rs 1,650 crore in the QIP in which shares were issued at Rs 142.15 apiece. The state-owned lender said it allotted 11,60,74,569 new equity shares to eligible qualified institutional buyers (QIBs) in the issue that opened on June 21 and closed on June 24.
Shares of Indian Bank plunged as much as 8 per cent to Rs 141.90 on Tuesday. However, the counter was trading at Rs 145 at 10.15 am. BSE Sensex was trading 138.01 points, or 0.26 per cent, lower at 52,597.58 at the same time. The counter settled at Rs 154.65 on Monday.
Life Insurance Corporation (LIC), and were among top investors picking up stakes in Indian Bank under the QIP, according to a regulatory filing. The country’s largest and the only state-owned life insurer, LIC, picked up 17.80 per cent of shares issued under the QIP that closed on Thursday.
It was followed by SBI Life Insurance (11.87 per cent), SBI Mutual Fund and its various schemes (11.87 per cent), Societe Generale and its various schemes (9.74 per cent) and Canara Bank subscribing to 5.93 per cent of shares offered in the issue, according to a regulatory filing by Indian Bank.
Indian Bank has surged as much as 70 per cent in the year 2021 so far. The PSU lender has delivered over 125 per cent return in the last one year to investors.
In March this year, its board’s committee on capital raising had given approval for raising equity capital aggregating up to Rs 4,000 crore through QIP in one or more tranches.
Domestic brokerage firm Geojit Financial Services had given a ‘buy’ rating, with a target price of Rs 175 after Q4 results on the lender earlier this month.
“Indian Bank is showing improvement in key business areas post its merger. Though we expect higher slippages in the coming quarter due to the impact of the second wave, the long-term outlook of the bank stays intact,” it added.
