Bank of India acquires 5.56% stake in ONDC for Rs 10 crore

State-owned lender, Bank of India, said on Tuesday that it has acquired over 5.56 per cent stake in Open Network for Digital Commerce (ONDC) for Rs 10 crore. “In accordance with the provisions of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform you that on 27.09.2022, Bank has invested in the capacity of Promoter Shareholder of ONDC, an amount of Rs 10 crore in Open Network for Digital Commerce (ONDC), under Private Placement Route,” stated the lender in a regulatory filing.

It said that as of September 27, the lender’s shareholding in the company amounts to 5.56 per cent of the total shareholding as a result of the equity participation.

The bank said that the deal is expected to complete in the second quarter of FY23.

In absolute terms, it has acquired 10,00,000 equity shares for Rs 100 each in the yet-to-be operational digital commerce company, incorporated in December 2021.

Not only Bank of India, other banks had also acquired stakes in ONDC. ICICI Bank acquired 10 lakh equity shares – amounting to 5.97 per cent stake – in ONDC for Rs 10 crore in March. Similarly, Punjab National Bank had also acquired 5.97 per cent stake in ONDC for Rs 10 crore in March.

On the other hand, HDFC Bank on Wednesday said in March that it acquired 7.84 per cent stake in ONDC for Rs 10 crore. Kotak Mahindra Bank, Axis Bank, State Bank of lndia (SBI) also acquired 7.84 per cent stake in ONDC for Rs 10 crore.

Bombay Stock Exchange’s (BSE) 100 per cent subsidiary BSE Investments Limited (BSEIL) acquired 5.88 per cent in ONDC.

Open Network for Digital Commerce initiative aims at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks. ONDC is to be based on open-sourced methodology, using open specifications and open network protocols independent of any specific platform, as per the Ministry of Commerce & Industry.

Also read: HDFC Bank joins other lenders; acquires 7.84% stake in ONDC

Also read: BSE Investments picks 5.88% stake in ONDC