Bank of Maharashtra Shares Gain As Board Launches QIP At Rs 29.98 Per Share

Shares of Bank of Maharashtra Ltd. rose on Friday after it announced the launch of qualified institutional placements to raise funds starting June 1.

The bank's board has approved plans to raise unspecified funds through a QIP of shares with a floor price of Rs 29.98 apiece, the company said in an exchange filing. This is a discount of 4.33% from Thursday's close of Rs 31.34 on the BSE. The board of directors will reconvene on June 6 to determine the issue price for the allotment to qualified institutional buyers.

Shares of Bank of Maharashtra rose 1.44% to Rs 31.8 apiece as of 9:59 a.m. on Friday, compared to a 0.12% advance in the benchmark Nifty 50. The stock rose as much as 2.71% intraday.

The total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 66.1.

One analyst tracking the company maintains a 'buy' rating on the stock, according to Bloomberg data. The average 12-month consensus price target implies a potential downside of 33.8%.