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Indian Overseas Bank is planning to allot 22,97,53,015 equity shares on a preferential basis to the Government of India aggregating to Rs 1199.99 crore including share premium,as part of the Government's plans to infuse fund into the Bank.
The public sector bank today informed the National Stock Exchange that the decision was taken by the Board of Directors in a meeting held on November 11, 2013, about allotment of equity shares to Government of India on a preferential basis and to constitute a Committee of Directors with powers delegated to carry out the same in compliance with the regulations.
The Committee met today and has fixed the price at Rs 52.23 per equity share, including premium of Rs 42.23 per equity share, for the preferntial allotment. The allotment is subject to approval by shareholders at the upcoming EGM, said the Bank.
As reported earlier, the Bank has been in need of around Rs 2,100 crore capital has earlier said that the Government would be infusing Rs 1,200 crore while it is looking to raise funds through other modes to fill the need gap.
As on September 30, 2013, share holding of the Government of India in the Bank has been 73.80% of the total shares in the Bank.
