Indian Overseas Bank plans for rights issue

The Board of Directors of Indian Overseas Bank at its meeting held on December 29, 2012, considered and accorded sanction for going for a Rights Issue of 20 Crore equity shares of face value of Rs. 10 each at a premium to be decided based on the market conditions.

The Board also gave its principle approval for issue of 20 crore fully convertible preference shares of face value of Rs. 10 each at par to be converted into equity shares of Rs. 10 face value at premium (to be decided at the time of issue) at a future period not exceeding five years from date of issue by way of private placement.

Both the above proposals are subject to prior clearance from Gol, RBI and other Regulatory Authorities.

The Indian Overseas Bank stock was trading at Rs.85.80, up by Rs.0.65 or 0.76%. The stock hit an intraday high of Rs.86.60 and low of Rs.85.

The total traded quantity was 0.45 lakhs compared to 2 week average of 1.28 lakhs.

Source : Equity Bulls

Keywords