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After getting approval from the Foreign Investment Promotion Board to raise the foreign holding cap from the current 24 per cent to 35, Karur Vysya Bank (KVB) is now in the process of getting the resolution passed by its board. "It will take some time, about a month or so," KVB Managing Director and Chief Executive, Mr P. T. Kuppuswamy, told Business Line .
According to him, this would happen after completion of the rights issue, which is now on. The bank has decided to allot two rights share for every five shares held (post allotment of bonus shares made during September 2010).
The bank's board, which met in Karur on March 7, decided to extend the closing date for the rights issue by two days ? from March 15 to 17.
The price per right share has been fixed at Rs 150. It is being issued at a premium of Rs 140 a share.
The bank, it is learnt, is planning to increase the holdings of foreign institutional investors (FIIs), non-resident Indians (NRIs) and foreign direct investment (FDIs) in its equity capital to 35 per cent. The FIPB has cleared the proposal. Shares worth Rs 107.50 crore is expected to be issued to foreign investors. The present foreign holding is 23.3 per cent
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