Private sector South Indian Bank said shareholders of the bank on Tuesday approved raising equity capital of ₹240 crore through qualified institutional placement (QIP).
The shareholders of the bank at the extraordinary general meeting approved the resolution for issuance of equity shares on preferential basis, the bank said.
The special resolution was passed with requisite majority (99.96 per cent), South Indian Bank said in a regulatory filing.
"Approval of the members of the bank has been accorded to create, offer, issue and allot 28,30,18,867 equity shares of ₹1 each for a consideration not exceeding an aggregate amount of ₹239,99,99,992.2 to four investors, a each a qualified institutional buyer (QIB) by way of preferential allotment on private placement basis (preferential allotment)," the bank said.
Under the resolution, Kotak Mahindra Life Insurance Co Ltd; HDFC Life Insurance Co Ltd and SBI Life Insurance Co Ltd will be allotted 8,84,43,396 shares each for ₹75 crore each ( ₹74,99,99,998.1). While, ICICI Lombard General Insurance Co Ltd will subscribe to 1,76,88,679 shares for ₹15 crore ( ₹14,99,99,997.9).
The EGM, attended by all the ten directors of the board, happened through video conferencing and other audio visual means. South Indian Bank scrip closed 1.14 per cent up at ₹ 8.90 apiece on BSE.