Financial Daily from THE HINDU group of publications
Friday, May 26, 2006
Financial Daily from THE HINDU group of publications Friday, May 26, 2006 |
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Private Banks Money & Banking - Bonus Announcements Markets - Rights Issue Our Bureau
Coimbatore , May 25 Karur Vysya Bank has announced a bonus and rights issue of shares. The bank's board, while deciding on a 1:1 bonus has proposed rights in 1:2 ratio (including the bonus share) as on the record date, yet to be fixed. The board, at a meeting held in Karur today, decided to issue 1,79,99,784 equity shares of Rs 10 each as bonus shares in the ratio of one equity shares for every equity share held by the shareholder as on the date of book closure, including 20699 equity shares to be kept in abeyance. KVB has informed the exchange about its decision to issue 1,79,99,784 equity share of Rs 10 each for cash at a premium of Rs 60 per share as rights issue in the ratio of one equity share for every two shares (including the bonus share), including 20,699 equity shares to be kept in abeyance Speaking to Business Line, the KVB Chairman, Mr P.T. Kuppuswamy, said the bank was expecting to mop up Rs 130 crore through this issue. "We will be using this fund in business, for our regular requirements,' he said. Asked why the board proposed to go for rights issue in the ratio of 1:2 (after dilution of equity) and at a heavily discounted premium, he said the book value and market rate was taken into consideration before arriving at this decision.
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