Indian Bank share rises over 5% on launch of Rs 4,000-crore QIP

Indian Bank share rose over 5% today after the lender launched a qualified institutional placement (QIP) of shares to raise around Rs 4,000 crore.  Share of Indian Bank gained 5.22% to Rs 153.1 against previous close of Rs 145.50 on BSE.

The stock has gained 8.22% in the last 2 days. Indian Bank share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The share has gained 135% in one year and risen 77% since the beginning of this year.

Market cap of the lender rose to Rs 17,126 crore on BSE.

Floor price of the QIP has been fixed at Rs 142.15 per share. Floor price is the minimum price set for an issue, below which an offer cannot be made.

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In March this year, the committee of directors had given approval for raising equity capital aggregating up to Rs 4,000 crore through QIP in one or more tranches.

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 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.

In Q4 of last fiscal, the firm reported a standalone profit after tax of Rs 1,709 crore. The bank amalgamated Allahabad Bank with itself with effect from April 1, 2020. In the quarter ended March 2020, the amalgamated entity had reported a standalone net loss of Rs 1,641 crore.

The lender had reported a net loss of Rs 217.73 crore in the March 2020 quarter.

The bank said this figure is of standalone Indian Bank financials of pre-amalgamation period and, hence, not comparable with post amalgamation financials of March 2021.

For the full year 2020-21, net profit stood at Rs 3,005 crore as against a loss of Rs 4,643 crore for 2019-20.