Bank of India said on Tuesday that it had purchased a 5.56 percent share in Open Network for Digital Commerce (ONDC) for Rs 10 crore. “In accordance with 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 invested an amount of Rs 10 crore in Open Network for Digital Commerce (ONDC), under Private Placement Route,” the lender stated in a regulatory filing.
According to the corporation, as of September 27, the lender’s investment in the company amounted to 5.56 per cent of the overall shareholding due to equity involvement.
The transaction is likely to close in the second quarter of FY23, according to the bank.
In absolute terms, it has purchased 100,000 equity shares at Rs 100 each in the yet-to-be-operational digital commerce business, which would be formed in December 2021.
Other banks, in addition to the Bank of India, have purchased holdings in ONDC. In March, ICICI Bank paid Rs 10 crore for 10 lakh equity shares in ONDC, equal to a 5.97 per cent ownership. Similarly, in March, Punjab National Bank purchased a 5.97 per cent interest in ONDC for Rs 10 crore.
On the other hand, HDFC Bank said on Wednesday that it had bought a 7.84 per cent interest in ONDC for Rs 10 crore in March. In addition, for Rs 10 crore, Kotak Mahindra Bank, Axis Bank, and State Bank of India (SBI) bought a 7.84 per cent ownership in ONDC.
BSE Investments Limited (BSEIL), a 100 percent subsidiary of the Bombay Stock Exchange (BSE), bought 5.88 per cent of ONDC.
The project OINDC intends to promote open networks for all elements of the exchange of goods and services through digital or electronic networks. According to the Ministry of Commerce and Industry, ONDC would be built on an open-sourced approach, employing open standards and open network protocols that are independent of any single platform.
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