Bank of India gains on fund raising plans

State-owned Bank of India (BoI) has gained over 3% at Rs 240 on the NSE (National Stock Exchange) after the bank announced on Monday that it will raise up to Rs 641.99 crore by selling shares to Life Insurance Corp and New India Assurance Company to fund its business growth and meet global risk norms.

The bank has decided to issue and allot up to 2.26 crore of Rs 10 each for cash at Rs 283.50 per share, including premium of Rs 273.50 per equity share, at a price as determined in accordance with Sebi regulation aggregating up to Rs 641.99 crore on preferential basis, BOI said in a notice to the BSE.

LIC currently holds 12.53% stake in Bank of India. Following the fresh investment, stake of LIC would further go up.

The stock opened at Rs 232 and touched a high of Rs 242 on the NSE. A total of 1,233,806 shares changed hands on the NSE so far.