Shares of Indian Bank surged five percent on Tuesday, trading near its 52-week high after the lender launched its qualified institutional placement (QIP) to raise around Rs 4,000 crore with a floor price set at Rs 142.15 per share.

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The stock rose as much as 5.2 percent to its day's high of Rs 153.10 per share on the BSE. In comparison, Sensex was trading around 0.7 percent higher.

The board of directors in a meeting held on Monday approved and authorised the opening of the QIP on June 21, Indian Bank said in a regulatory filing.

"The bank may, in accordance with the special resolution of the shareholders, at its discretion offer a discount of up to 5 percent on the floor price in the QIP," it added.

Further, another meeting is scheduled to be held on June 24 to consider and approve the issue price, including a discount for the equity share to be allotted to eligible qualified institutional buyers (QIBs), pursuant to the QIP, the filing stated.

In March this year, the committee of directors had accorded approval for raising equity capital aggregating up to Rs 4,000 crore through QIP in one or more tranches.

At 10:40 am, the shares of Indian Bank were trading 3.99 percent higher at Rs 151.25 apiece on the BSE.

(With inputs from PTI)

First Published:Jun 22, 2021 10:46 AM IST