IOB gains on plan to raise Rs 1,000 crore via various routesIOB gains on plan to raise Rs 1,000 crore via various routes

Indian Overseas Bank (IOB) is currently trading at Rs. 84.80, up by 0.45 points or 0.53% from its previous closing of Rs. 84.35 on the BSE. The scrip opened at Rs. 84.95 and has touched a high and low of Rs. 85.75 and Rs. 83.00 respectively. So far 498176 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 86.50 on 26-May-2014 and a 52 week low of Rs. 37.15 on 19-Aug-2013. Last one week high and low of the scrip stood at Rs. 85.75 and Rs. 73.60 respectively. The current market cap of the company is Rs. 10426.34 crore. The promoters holding in the company stood at 73.80% while Institutions and Non-Institutions held 17.14% and 9.06% respectively. IOB is planning to raise Rs 1,000 crore through a Qualified Institutional Placement (QIP), public issue, rights issue, preferential issue. The proposed fund raising is in view of certain expansion plans of the bank, the implementation of Basel III norms, and consequent capital charge and there is a need to increase the capital to further strengthen the Capital Adequacy Ratio. Moreover, the bank will also raise around $500 million through medium-term notes (MTN). In March 2014, the bank raised Rs 398.04 crore from Life Insurance Corporation through preferential basis. The fund-raising was primarily to augment long term resources and maintain a Tier I capital adequacy ratio of desired level. IOB reported over four fold jump in its net profit at Rs 268.33 crore for the quarter as compared to Rs 58.87 crore for the same quarter in the previous year. Total income of the bank increased 9.79% at Rs 6,475.93 crore for quarter under review, as compared to Rs 5,898.15 crore for the quarter ended March 31, 2013.