Indian Overseas Bank is trading higher by over 3% at Rs 88.40, extending its previous day around 1% gain, after its board approved fund raising plans via rights issue or a private placement basis.
“The board of directors have approved going for a rights issue of 200 million equity shares of face value of Rs 10 each at a premium to be decided based on the market conditions,” the Chennai-based bank said in a statement.
The board also given in principle approval for issue of 200 million fully convertible preference shares of face value of Rs 10 each at par to be converted into equity shares of Rs 10 face value at premium (to be decided at the time of issue) at a future period not exceeding five years from date of issue by way of private placement,” it added.
The fund raising plans are subject to prior clearance from Government of India, Reserve Bank of India and other Regulatory Authorities, it added.
The stock opened at Rs 86.50 and hit a high of Rs 89 on the NSE. A combined 1.28 million shares have changed hands on the counter so far on both the exchanges.