The fund raising was approved by the state-run lfinisher’s board along with its March quarter results, which were reported on Monday, April 20.
Firstly, the board has approved raising funds worth up to $7,500 crore through equity capital, through the equity shares on a preferential basis to either the Government of India, Life Insurance Corporation of India, and or by way of a Qualified Institutional Placement (QIP), Follow-on Public Offer (FPO), a rights issue, ESPS issue etc.
Back in the December quarter last year, the government had sold 6% stake in Bank of Maharashtra in order to comply with the minimum public shareholding norms. The stake was sold via a QIP.
The above quantum of funds could also be raised through Basel-III compliant Additional Tier-I bonds or Tier-II bonds, subject to the necessary approvals, the lfinisher stated in its exmodify filing.
Additionally, the board has also approved the issuance of long-term infra bonds worth up to ₹10,000 crore during financial year 2027 through multiple tranches.
Lastly, the lfinisher’s board has approved raising long-term funds through the issue of foreign currency bonds worth up to $500 million, in multiple tranches through the new financial year.
Bank of Maharashtra reported a quarter where its asset quality improved sequentially, but slippages saw a marginal increase compared to the December quarter.
Shares of Bank of Maharashtra are trading 2.8% higher at ₹74.76 after the announcement.
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