<article>State-run <a href="https://www.dealstreetasia.com/?s=dena">Dena</a> Bank said on Tuesday said that it had launched a qualified institutional placement (QIP) of shares to raise as much as Rs1,800 crore from institutional investors.</article>

State-run <a href="https://www.dealstreetasia.com/?s=dena">Dena</a> Bank said on Tuesday said that it had launched a qualified institutional placement (QIP) of shares to raise as much as Rs1,800 crore from institutional investors.
On 27 June, the bank’s shareholders had approved a plan to raise funds through a QIP, a capital-raising tool through which listed companies can sell shares, fully and partly convertible debentures, or any securities other than warrants that are convertible into stocks, to a qualified institutional buyer.
“Subject to compliance with applicable laws and regulations, our bank intends to use the net proceeds of the issue for meeting capital requirement and to augment its capital adequacy ratio and general corporate purposes,” the lender said in a QIP prospectus filed with the stock exchanges.
The bank has set a floor price of Rs30.73 per share for the share sale. The bank may also offer a discount of up to 5% on the floor price, it said in the stock exchange filing.
On Tuesday, shares of Dena Bank gained 0.49% to close at Rs30.60 on the <a href="https://www.dealstreetasia.com/?s=bse">BSE</a>, while the benchmark Sensex gained 0.24% to close at 31,924.41 points. Dena Bank is among 12 public sector banks—Allahabad Bank, Andhra Bank, Bank of India, Central Bank of India, IDBI Bank, Indian Bank, <a href="https://www.dealstreetasia.com/?s=pnb">Punjab National Bank (PNB),</a> Syndicate Bank, UCO Bank, United Bank of India and Vijaya Bank are the others—that have lined up plans for raising funds from capital markets to shore up their capital base to meet Basel III norms, PTI reported on 6 August.
Allahabad Bank has already obtained shareholders’ to raise equity capital aggregating up to Rs2,000 crore, while PNB’s board has approved raising as much as Rs3,000 crore.
On 25 September, Mint reported that Bank of India was looking to raise Rs500 crore through a QIP. Dena Bank is the seventh lender this year to launch a QIP.
This year, QIP fund-raising activity has been dominated by large issuances in the banking and financial services sector.
Till September this year, 20 companies had raised Rs39,681.67 crore through QIPs, according to data from primary market tracker Prime Database.
Earlier this year, State Bank of India (SBI) and <a href="https://www.dealstreetasia.com/?s=kotak">Kotak Mahindra Bank Ltd</a> raised record sums through QIPs from public and private sector companies, respectively. In June, SBI raised Rs15,000 crore through a QIP, while in May, Kotak Mahindra Bank raised Rs5,803 crore through an institutional share sale.
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<h4>This story was first published on <a href="http://www.livemint.com/Industry/Im9lZhVO4TTnhqapvJaKzN/Dena-Bank-launches-QIP-to-raise-Rs1800-crore.html">LiveMint.com.</a></h4>

The bank has set a floor price of Rs30.73 per share for the share sale and may also offer a discount of up to 5% on it.

India: Dena Bank launches QIP to raise $276m

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India: Dena Bank launches QIP to raise $276m

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