Shares of Bank of India (BoI) today rose by over 4.5 per cent after the company said it will raise up to Rs 641.99 crore by selling shares to Life Insurance Corp and New India Assurance to fund its business growth and meet global risk norms.
The stock jumped 4.26 per cent to Rs 243.10 on the BSE. On the NSE, it gained 4.57 per cent to Rs 243.35.
The bank has decided to issue and allot up to 2.26 crore shares of Rs 10 each for cash at Rs 283.50 per share, including premium of Rs 273.50 per equity share, at a price as determined in accordance with the SEBI regulation aggregating up to Rs 641.99 crore on preferential basis, BOI had said in a notice to the BSE yesterday.
The bank has called an extraordinary general meeting of shareholders on March 7, it had said.
LIC currently holds 12.53 per cent stake in Bank of India. Following the fresh investment, the stake of LIC would further go up.