Stock to watch on Friday: Bank of Baroda declares ₹8500 crore fundraise via issuance of fresh shares | Stock Market News
Source: Live Mint
Stock to watch: Bank of Baroda (BoB) shares will be in focus during Friday deals as the state-owned bank has declared raising of funds up to ₹8,500 crore. The board of directors of the PSU Bank considered and approved the fundraising proposal during its meeting on Thursday, 13 February 2025. The PSU bank would raise these funds by issuing fresh shares, including QIP.
BoB fundraise details
The PSU bank informed the Indian stock market exchanges about the development, saying, “We refer to our letter no. BCC:ISD:117:16:53 dated 03.02.2025 and advise that the Board of Directors of our Bank in its meeting held today i.e. 13.02.2025 has approved raising of capital up to Rs.8500 crores by way of common equity capital by various modes including QIP in suitable tranches up to March 2028 and beyond, as required. This will be subject to applicable statutory/regulatory approvals.”
“Additionally, the Board has authorized (an) extension of time up to 31.03.2026 and beyond, if required, for raising of the remaining capital of ₹4,000 crores, (by way of Additional Tier I (AT I) and or Tier II Debt Capital Instruments) out of the ₹7,500 crores which the Board already approved as a part of previous year’s capital plan in its meeting dated 05.07.2024,” Bank of Baroda added in its exchange filing.
Bank of Baroda keeps MCLR unchanged
Recently, the state-owned lender reviewed the Marginal Cost of Funds Based Lending Rate (MCLR), which became effective from 12 February 2025. In this review, the BoB board left the existing rates unchanged on all tenors. So, MCLR overnight will continue to levy 8.15 per cent, whereas one-month, three-month, six-month, and one-year MCLR will continue to levy 8.35 per cent, 8.55 per cent, 8.80 per cent, and 9 per cent, respectively.
Bank of Baroda shares have been in base-building mode for one year, delivering zero return to its shareholders. BoB share price has shed over 12 per cent in YTD, while it has corrected around 19 per cent in one year. BoB share price ended on Thursday at ₹210.78 apiece on the NSE, close to its 52-week low of ₹205.71 apiece.
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