After raising Rs 20.28 crore from Larsen & Toubro through a preferential issue of 12 lakh shares a few months ago, Kumbakonam (Tamil Nadu)-headquartered City Union Bank has raised additional funds through another round of preferential allotment. The bank has allotted 68 lakh shares to six investors on preferential basis. The aggregate amount raised through this issue is Rs 125.45 crore.The board of directors of the bank met today and approved the scheme. The bank has allotted 3 lakh shares to Larsen and Toubro, 15 lakh shares to Life Insurance Corporation of India, 15 lakh to FMO Netherlands, 12.5 lakh shares each to Area Investments and Argonaut Ventures and 10 lakh shares to Yatish Trading Company.The total FII/NRI holding post this preferential issue is 19.25% of the bank's equity capital. The bank's net worth is expected to cross Rs 500 crore by the end of this fiscal, a bank statement said.In March 2007, the bank had allotted 12 lakh equity shares of Rs 10 each at premium of Rs 159 per share to Larsen & Toubro on preferential basis and raised Rs 20.28 crore.
