Vijaya Bank launches Rs 1000 crore QIP

MUMBAI: Bangalore based Vijaya Bank launched a Rs 1000 crore share sale to institutional investors through the qualified institutional placement (QIP) route late on Monday evening.

In a notice to the stock exchanges, the bank said it had fixed the floor price of its share sale at Rs 66.36 per share a discount of 6.61% to Monday’s closing price of Rs 70.75 per share on the Bombay Stock Exchange (BSE).

“The bank may offer a discount of not more than 5% to the floor price,” Vijaya said in the notice of the exchange. A 5% discount to Monday’s closing price means that the bank will sell shares at a minimum of Rs 63 per share.

If successful Vijaya Bank’s share sale will be seen as a benchmark for small public sector banks which are struggling to raise capital. In June State Bank of India, the country’s largest lender raised Rs 15,000 crore through a similar overnight QIP.

Vijaya Bank’s profit had risen 57.5% to Rs 254.69 crore in the first quarter ended June due to income from the retail business and a marginal fall in bad loans.