Indian Overseas Bank rose 0.74% to Rs 47.85 at 9:43 IST on BSE after the bank's board approved raising capital by way of issue of equity shares to the Government of India.
The announcement was made after market hours on Friday, 20 September 2013.
Meanwhile, the S&P BSE Sensex was down 146.59 points or 0.72% at 20,117.12.
On BSE, 64,000 shares were traded in the counter as against average daily volume of 1.39 lakh shares in the past one quarter.
The stock was volatile. The stock rose as much as 2.42% at the day's high of Rs 48.65 so far during the day. The stock lost as much as 1.57% at the day's low of Rs 46.75 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 94.85 on 7 January 2013.
The stock had outperformed the market over the past one month till 20 September 2013, surging 20.87% compared with the Sensex's 11.06% jump. The scrip had, however, underperformed the market in the past one quarter, declining 13.71% as against Sensex's 8.25% rise.
The mid-cap state-run bank has equity capital of Rs 924.10 crore. Face value per share is Rs 10.
Indian Overseas Bank's (IOB) board of directors at a meeting held on Friday, 20 September 2013, approved raising capital by way of issue of equity share of Rs 10 each at a price determined under Sebi (ICDR) Regulations of 2009 to the Government of India (GoI) to the extent of capital infusion by GoI under preferential allotment. The board has also accorded its approval to the bank to issue equity shares of Rs 10 each to Qualified Institutional Buyers (QIBs) by way of private placement for the shortfall in Tier I capital requirements of Rs 2100 crore assessed by the bank and the capital infusion by GoI. The exact amount of government support for infusion of capital and the quantum and size of issue for QIP will be known in due course, IOB said.
IOB's net profit declined 46.1% to Rs 125.80 crore on 14.5% growth in total income to Rs 6187.15 crore in Q1 June 2013 over Q1 June 2012.
The GoI holds 73.8% stake in IOB (as per the shareholding pattern as on 30 June 2013).
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