Bank of India surges on plan to mop-up Rs 1,500 crore via Basel III bonds

Bank of India is currently trading at Rs 172.80, up by 1.10 points or 0.64% from its previous closing of Rs. 171.70 on the BSE.

The scrip opened at Rs 172.00 and has touched a high and low of Rs 173.70 and Rs 171.50 respectively. So far 23993 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 392.20 on 18-Jan-2013 and a 52 week low of Rs 126.95 on 28-Aug-2013.

Last one week high and low of the scrip stood at Rs 176.90 and Rs 148.10 respectively. The current market cap of the company is Rs 10231.64 crore.

The promoters holding in the company stood at 64.11% while Institutions and Non-Institutions held 29.22% and 6.67% respectively.

In a bid to boost its tier II capital for business growth, public sector lender Bank of India is planning to raise around Rs 1,500 crore through Basel III compliant bonds. These bonds carry a feature called 'Point of non-viability (PONV)' trigger. Occurrence of such event results in loss of principal amount to investors and default on the instrument.

Rating agency CRISIL has assigned ‘AAA/Stable’ rating to Tier II bonds issue. The rating agency has also reaffirmed its ratings on the bank’s existing debt instruments at ‘CRISIL AAA/Stable/CRISIL A1+’.

The ratings continue to reflect expectation of strong support from the Government of India (GoI), the bank’s majority shareholder, both on an ongoing basis and in the event of any distress.