Indian Bank opens Rs 4,000-cr QIP issue; sets floor price at Rs 142.15/share

State-owned Indian Bank on Monday launched its qualified institutional placement (QIP) of shares to raise around Rs 4,000 crore, setting the floor price at Rs 142.15 per share.

The committee of directors on capital raising in its meeting held on Monday approved and authorised the opening of the QIP on June 21, Indian Bank said in a regulatory filing. The committee approved the floor price for the QIP at Rs 142.15 per equity share.

Floor price is the minimum price set for an issue, below which an offer cannot be made. "The bank may, in accordance with the special resolution of the shareholders, at its discretion offer a discount of up to 5 per cent on the floor price in the QIP," it added.

Further, a meeting of the committee is scheduled to be held on June 24, 2021 to consider and approve the issue price, including a discount for the equity share to be allotted to eligible qualified institutional buyers (QIBs), pursuant to the QIP, it said.

In March this year, the committee of directors had accorded approval for raising equity capital aggregating up to Rs 4,000 crore through QIP in one or more tranches. Indian Bank stock closed 4 percent higher at Rs 145.50 apiece on BSE.