State-run Bank of Maharashtra fastened its Qualified Institutional Placement (QIP) issue, which has raised up to Rs 1,000 crore. For the QIP, the board of members had permitted the allotment of 35.1 crore shares to institutional buyers at its conference on June 6.

The shares were secured at an issue price of Rs 28.5 per equity share, a 4.94% discount to the floor price of Rs 29.94 per equity share pre-determined at the time of the QIP launch on June 1.

On Tuesday, the issue price is also at a 6.25% discount to the closing value of Bank of Maharashtra shares.

Five institutional buyers were fixed more than a 5% stake in the company. State-owned Life Insurance Corporation of India (LIC) compressed the biggest chunk of the issue. The life insurer was given 8.34 crore shares or 23.77% of the aggregate approved issue size.

It was further followed by Aditya Birla Sun Life Company, which took 4.50 crore shares or 12.84% of the overall QIP. Other foremost institutional buyers comprised Bajaj Allianz General Insurance Company, Rajasthan Global Securities, and Societe Generale.

Shares of the state-owned lender, Bank of Maharashtra, also responded positively to the fundraising and, at 9.32 am, were trading around 1% higher at Rs 30.65 on the NSE.