Indian Bank shares gain more than 3% on plans to raise up to Rs 4,000 crore via multiple routes

Shares of Indian Bank gained nearly 3 per cent on Monday after the company announced that its board is contemplating a proposal to raise up to Rs 4,000 crore via multiple routes. A meeting of its board of directors has been  scheduled on August 30, 2023, to consider the proposal for raising up to Rs 4,000 crore the public sector lender said in a filing to the stock exchanges.

The capital infusion will be explored through various avenues, including Qualified Institutional Placement (QIP), Follow-on Public Offering (FPO), and Rights Issue, either singularly or in combination.

The bank has already received the go-ahead from shareholders regarding the proposed fund raising. The upcoming Committee of Directors meeting will delve into the specifics of the capital-raising strategy and modalities.

Current shareholding pattern of Indian Bank and share price

As of June 30, 2023, the Government of India holds a 79.86 per cent stake in the bank. The bank showcased strong financial performance in the first-quarter results for the fiscal year 2024. The bank’s net profits grew by 41.1 per cent, reaching Rs 1,849.68 crore. Revenue also grew by 25.4 per cent to Rs 14,921.43 crore compared to the same period a year ago.

On Monday, shares of Indian Bank surged as much as 2.96 per cent to hit a high of Rs 406.70 apiece on BSE. However the stock pared its early gains and was trading at Rs 403.15 apiece, up 8.2 per cent, on BSE at 1:26 PM.

Over the past month, Indian Bank shares have experienced a remarkable surge, with gains of over 17 per cent.  The shares have more than doubled in value in the past one-year period and gained over 45 per cent in the past three months period. The stock has seen 41 per cent growth in value so far this year.