Indian Overseas Bank rose 1.77% to Rs 86.40 at 10:17 IST on BSE after the bank said it has requested the government to infuse capital fund to the bank to an extent of Rs 3500 crore for the current financial year.
The announcement was made after market hours on Thursday, 12 June 2014.
Meanwhile, the S&P BSE Sensex was up 43.88 points or 0.17% at 25,620.09.
On BSE, so far 1.28 lakh shares were traded in the counter as against average daily volume of 4.62 lakh shares in the past one quarter.
The stock hit a high of Rs 87 and a low of Rs 85.35 so far during the day. The stock had hit a 52-week low of Rs 37.15 on 19 August 2013. The stock had hit a 52-week high of Rs 89.90 on 6 June 2014.
The stock had outperformed the market over the past one month till 12 June 2014, surging 39.29% compared with Sensex's 8.6% rise. The scrip had also outperformed the market over the past one quarter, jumping 79.11% as against Sensex's 17.02% rise.
The state-run bank has equity capital of Rs 1235.35 crore. Face value per share is Rs 10.
Indian Overseas Bank (IOB) said that the bank has requested Government of India (GOI), Ministry of Finance, Department of Financial Services to infuse capital fund to the bank to meet Tier I capital under Basel III norms to an extent of Rs 3500 crore for the current financial year, 2014-15. The bank has also requested GOI, Ministry of Finance, Department of Financial Services for the dilution of their shareholding in the bank.
Accordingly, the board of directors of the bank at its meeting held on Thursday, 12 June 2014, considered and approved the bank's assessment of capital requirement of Rs 3500 crore, under Tier I capital, for the financial year 2014-15. The board has given permission for the bank to raise capital by way of issue of equity shares of Rs 10 each at a price determined by SEBI (ICDR) Regulations 2009, to GOI to the extent of GOI's capital infusion. The board has also given permission for the bank to issue equity shares of Rs 10 each to qualified institutional buyers (QIBs) by way of private placement, up to an extent of not exceeding Rs 1200 crore (including the share premium) out of the shortfall in the Tier I Capital Requirement of Rs 3500 crore assessed by the bank.
IOB's net profit galloped 355.8% to Rs 268.33 crore on 15.3% growth in total income to Rs 6800.13 crore in Q4 March 2014 over Q4 March 2013.
The Government of India (GoI) holds 73.8% stake in IOB (as per the shareholding pattern as on 31 March 2014).
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