Indian Bank committee nods to raise up to Rs 4,000 crore through share sale

State-owned Indian Bank on Tuesday said its committee of directors has given approval for raising up to Rs 4,000 crore through share sale.

Shareholders of the bank on March 2 had given approval for the capital raising.

The Committee of Directors in its meeting held on March 9, 2021, has accorded approval for raising of equity capital of the bank aggregating up to Rs 4,000 crore (including premium) through qualified institutions placement (QIP) in one or more tranches, Indian Bank said in a regulatory filing.

The fund raising would be subject to all statutory and regulatory approvals, it said.

Following the QIP, the government holding in the bank will come down from the existing level. The government as the promoter of the bank holds 88.06 per cent in the Chennai-headquartered Indian Bank.

The lender said it is required to increase its public shareholding to at least 25 per cent within a period of three years from August 3, 2018.