The Board of Directors of Jammu and Kashmir Bank have approved capital raise of up to ₹500 crore via issue of equity shares in one or more tranches.
The private sector bank’s board also approved raising of up to ₹1,500 crore via Tier-2 Bonds issuance.
The raising of equity share capital will be by way of rights issue/preferential allotment/private placement/ Qualified Institutional Placement (QIP)/ Followon Public Offer (FPO) or any other approved route, as per the bank’s exchange filing.
The Tier-2 bonds, which will be issued on a private placement basis, will be non-convertible, redeemable, unsecured, BASEL III Compliant in the nature of debentures.
The capital issuance for FY23 is subject to approval of shareholders at the ensuing Annual General Meeting and other regulatory approvals as applicable, the bank said.