The board of Indian Overseas Bank has approved a rights issue. The bank proposes to issue 20 crore equity shares of face value Rs 10 each at a premium to be decided based on the market conditions.
The bank also proposes to issue 20 crore fully convertible preference shares of face value Rs 10 each at a premium to be decided at the time of the issue.
The resolution is subject to approval by RBI and other authorities. The Government’s shareholding in the equity capital of the bank is at 69.62 per cent.
IOB shares were trading at Rs 85.70, up 0.65 per cent on the BSE.