Indian Overseas Bank to raise Tier I Capital through issue of Equity Shares

The Board of Directors of Indian Overseas Bank at its meeting held on September 20, 2013, has considered and approved the fund raising proposal.

The Board has granted permission to the Bank to raise capital by way of issue of equity share of Rs. 10 each/- at a price determined under SEBI (ICDR) Regulations of 2009 to GOI to the extent of Capital Infusion by GOI under preferential allotment.

The Board has also accorded permission to the Bank to issue equity shares of Rs. 10/- each to Qualified Institutional Buyers by way of private placement for the shortfall in Tier I Capital Requirements of Rs. 2100 crore assessed by the Bank and the capital infusion by GOI.

Shares of Indian Overseas Bank was last trading in BSE at Rs.47.5, down by Rs.1.50 over its previous close of Rs.49. The stock hit an intraday high of Rs.49.3 and low of Rs.45.

The total traded quantity was 235647 and the turnover was Rs.1,11,21,300.

Source : Equity Bulls

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