Bank of Baroda allots 55 crore shares worth ₹4,500 crore to QIBs
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BNP Paribas Arbitrage, SBI Life, LIC, Nippon India Large Cap Fund, ICICI Prudential Business Cycle Fund each allotted more than 5% equity
Eligible qualified institutional buyers (QIBs), including BNP Paribas Arbitrage, SBI Life Insurance Company and Life Insurance Corporation of India, have been collectively allotted about 55 crore equity shares aggregating about ₹4,500 crore by the Capital Raising Committee of the Board of Directors of Bank of Baroda (BoB).
BoB’s qualified institutional placement (QIP) issue opened for subscription on February 25, 2021 and closed on March 2.
According to the bank’s regulatory filing, the issue price of ₹81.70 per equity share (including a premium of ₹79.70 per equity share) was at a discount of 5 per cent to the floor price of ₹85.98 per equity share determined as per SEBI Regulations for equity shares to be allotted to eligible QIBs in the issue.
The domestic mutual funds industry has come a long way with current assets under management (AUM) topping Rs 30 trillion. However, global brokerage firm Jefferies believes it still has tremendous growth potential as it has barely scratched the surface when it comes to AUM growth. An analysis done by Jefferies shows India’s MF AUM as a percentage of GDP at 12 per cent is among the lowest and a fraction of global average of 63 per cent. Smaller emerging market peers, such as Brazil (ratio of 68 per cent) and South Africa (48 per cent), boast of better penetration. The brokerage estimates industry AUM to grow at a compound annual growth rate (CAGR) of 13 per cent between FY22 and FY 24. Equity AUM is expected to post a 15 per cent CAGR, with its share in the overall assets mix rising to 46 per cent by FY24, from about 42 per cent currently. India’s equity AUM to GDP is at 5 per cent, compared to global average of 34 per cent.
Read more about Changing investor preference alters pecking order of Equity MF categories on Business Standard. Last year, Sebi modified scheme characteristics of multi-cap schemes, wherein at least 25 per cent of the corpus had to be invested in large, mid, and small-cap stocks each