Money & Banking

IOB to raise Rs 1,542 cr via pref. issue

R. Y. Narayanan Coimbatore | Updated on March 12, 2018

Indian Overseas Bank (IOB) will raise up to Rs 1,542 crore by way of preferential allotment of shares to the Government of India and Life Insurance Corporation of India (LIC).

While the bank has not indicated how much each would be allotted, it is expected that the exercise would be completed before the end of the current fiscal.

In a communication to the stock exchanges, the bank said its board has approved issue of shares of Rs 10 face value at a premium to be determined on a preferential basis to GoI and LIC (under its various schemes) up to Rs 1,542 crore.

This was subject to approvals from both the Government and LIC and a committee of directors has been constituted to take the decision forward.

IOB has called for an EGM of shareholders on March 18 to get shareholders' approval and complete the formalities by March 31.

Shares of IOB were trading at Rs 81.05, down by Rs 1.05, on the NSE with a trading volume of 26.66 lakh shares by 2.40 p.m.

Published on January 30, 2013

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