Bank of Maharashtra to Issue Perpetual Bonds (Series I) for Rs.225 crore

Bank of Maharashtra has announced that the Bank has decided to issue Unsecured, Non-Convertible Subordinated Perpetual Bonds (Series I) in the nature of Promissory Notes to the extent of Rs 225 crore to augment the Tier I capital for strengthening the capital adequacy and enhancing long-term resources of the Bank. The bonds will carry coupon rate of 10.65% p.a. for a period of first 10 years with a step-up coupon rate of 11.15% p.a. for subsequent years if call option is not exercised by the Bank at the end of 10th year from the Deemed Date of Allotment.

The issue opens on July 23, 2007, closes on July 27, 2007 and the deemed date of allotment is July 31, 2007.

The stock closed on Friday at Rs.55.10, down by Rs.1.10 or 1.96%. The total traded quantity was 76456 compared to 2 week average of 220759. The stock hit an intraday high of Rs.57 and low of Rs.55.

Source : Equity Bulls

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