InvestorQ : Why is the Bank of Maharashtra planning to raise Rs.3000 crore via capital raising?
Arti Chavan made post

Why is the Bank of Maharashtra planning to raise Rs.3000 crore via capital raising?

Answer
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3 months ago


Bank of Maharashtra board approved the proposal to raise Rs.3000 crore via issuance of equity shares as well as bonds. The bank will look to shore up its Tier-1 and Tier-2 capital. A sum of Rs.2000 crore will be by way of preferential allotment to GOI and others while an additional Rs.1,000 crore will be through Basel-III-compliant Tier-I and Tier-II bonds.

BOM will issue equity shares to the government to the tune of Rs.831 crore on a preferential basis. For the fiscal year 2019-20, Bank of Maharashtra had reported net profits of Rs.389 crore as against a net loss of Rs.4783 crore in the financial year 2018-19. The share is just quoting above Rs.10 per share at this point of time.