Multibagger Bank stock reached 52-week high after it accepts bids for debentures

This mid cap banking stock reached its 52- week high in the market today after the bank accepted bids for its Tier- II bonds worth Rs. 515 crore at a coupon rate of 7.98%.

Share price of Bank of Maharashtra opened at Rs. 44 levels and gained 5% to reach its 52- week high of Rs. 46.15 per share. The stock has given a multibagger return of 136.93% in the last one year and 258.78% in the last three years.

On 14 Sep 2023, the bank received bids worth Rs. 760 crore and accepted Rs. 515 crore at a coupon rate of 7.98% for Unsecured, subordinated, redeemable, Non-convertible, Taxable, Fully Paid up, BASEL III Compliant Tier II Bonds (Series VI) in the nature of Debentures.

The face value of the bond stands at Rs. 1 crore. The call option can be exercised after five years from date of allotment and on every anniversary thereafter with prior approval of RBI. The deemed date of allotment is set as 18 Sep 2023. These securities are redeemable after 120 months from the Deemed Date of Allotment.

It has a market capitalization of Rs. 31,101 crore. Comparing its financial performance on a QoQ basis, the company has recorded a revenue of Rs. 5417.87 crore in Q1FY24, up by 2% from Rs. 5317.06 crore in Q4FY23.

Its net profit of Rs. 839.93 crore in Q4FY23 increased 5.09% to Rs. 882.49 crore in Q1FY24. The company maintains a low price to earnings ratio of 10.25 against its industry average price to earnings ratio of 11.46

Bank of Maharashtra Limited which is under the ownership of Ministry of Finance under Government of India is a public sector bank. It offers personal banking, retail loans, cash management, and other financial services. The bank has more than 20 million customers all across the country. It was established in 1935 and later nationalised in 1969.

Written by Bhumika Khandelwal

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