BAJAJ BROKING

Notification
No new Notification messages
Ather Energy IPO is Open!
Apply for the Ather Energy IPO through UPI in just minutes.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.

Bank of Baroda to Consider Capital Raising via QIP on February 13

Synopsis:

Bank of Baroda will discuss capital raising via QIP and other modes on February 13, 2025. The move aligns with the government’s plan to meet the 25% minimum public shareholding norm by August 2026. The Bank of Baroda share price trades 1.45% lower at ₹207.79.


Public sector lender Bank of Baroda is set to deliberate on capital raising through various modes, including Qualified Institutional Placement (QIP), in its board meeting scheduled for February 13, 2025. The bank aims to raise common equity capital in suitable tranches up to March 31, 2026, and beyond, subject to regulatory approvals. The decision is part of a broader initiative by the government to strengthen state-run banks and comply with public shareholding norms.

Also read: Government Plans Uniform Toll Policy to Ease Commuter Burden on Highways

BANK OF BARODA

Trade

249.93-3.29 (-1.29 %)

Updated - 30 April 2025
252.69day high
DAY HIGH
249.05day low
DAY LOW
8286634
VOLUME (BSE)

Key Takeaways

  • Board Meeting on February 13, 2025: Bank of Baroda will discuss capital raising plans, including QIP.

  • Regulatory Approvals Required: The decision will be subject to statutory and regulatory clearances.

  • Public Shareholding Compliance: Government aims to meet the 25% minimum public shareholding norm by August 2026.

  • QIP Fundraising for Five PSU Banks: Bank of Maharashtra, Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, and Central Bank of India also plan to raise funds.

  • Stake Sale via OFS Route: The government is considering selling stakes in these banks to reduce its holdings.

Also read: Time Technoplast Secures ₹40.6 Crore Order for Type IV Cylinders

Government’s Strategic Capital Raising Plan

The government has approved a fund-raising plan of ₹10,000 crore for five public sector lenders, including Bank of Baroda, through the QIP route. This move is aligned with its broader financial strategy to enhance liquidity and ensure compliance with regulatory norms. The Department of Investment and Public Asset Management (DIPAM) is also authorised to offload excess government stakes via the Offer For Sale (OFS) method.

As per the latest shareholding data, the government holds a significant stake in these banks:

Bank Name

Government Stake (%)

Bank of Maharashtra

79.6

Punjab & Sind Bank

98.25

Indian Overseas Bank

96.38

UCO Bank

95.39

Central Bank of India

93.08

The government’s stake in these banks is valued at approximately ₹50,000 crore based on the current share prices.

Market Impact and Bank of Baroda Share Price Performance

Following the announcement, the Bank of Baroda share price witnessed a 1.45% decline, trading at ₹207.79. Investors are closely watching developments regarding the fundraising plan, as QIP issuances often lead to equity dilution, impacting stock prices in the short term.

With fundraising set to commence in the fourth quarter of FY 2025, the banking sector is expected to witness increased capital inflows, potentially strengthening balance sheets and supporting credit growth. The government’s stake reduction plans may further enhance investor confidence in PSU banks, ensuring improved governance and market stability.

Bank of Baroda’s decision to consider capital raising via QIP aligns with the government’s push to meet regulatory requirements and strengthen public sector banks. With plans to offload stakes in multiple lenders, the move is set to impact market sentiment and PSU bank valuations. Investors should closely track further developments regarding capital raising and stake sales as the fiscal year progresses.

Also read: Mahindra Lifespaces Secures ₹950 Crore Order for Mumbai Redevelopment

Do you have a trading account app or demat account app?

You can open an account with Bajaj Broking in minutes.

Download the Bajaj Broking app now from Play Store or App Store.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://www.bajajbroking.in/disclaimer

Share this article: 

Read More Blogs

Disclaimer :

The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes.

The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.

Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.

BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.

Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

[ Read More ]

For more disclaimer, check here : https://www.bajajbroking.in/disclaimer

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

9.5 lakh+ Users

icon-with-text

4+ App Rating

icon-with-text

4 Languages

icon-with-text

₹4400+ Cr MTF Book

icon-with-text