Syndicate Bank approves issue of 41312457 shares

The Board of Directors of Syndicate Bank at its meeting held on February 29, 2016, has considered and approved the issue of 4,13,12,457 equity shares of the face value of Rs. 10/- each for cash at Rs. 52.51 aggregating to Rs. 216.94 Crore (Rupees Two hundred sixteen Crore and ninety four Lakh only) on preferential basis to LIC of India.

The Board also considered and approved the issue of equity shares of the face value of Rs. 10/- each for cash at such price as may be determined in accordance with Regulation 76 (1) of SEBI ICDR Regulations aggregating to such an amount as Government of India may consent, in the event of receipt of consent letter from Government of India.

In this connection, Board of Directors of the Bank has constituted a Committee of Directors and delegated powers to the committee. The Board finalized the Issue Price in accordance with SEBI (ICDR) Regulations and determine the number of shares to be issued, Quantum of issue to Government of India on a preferential basis.

The Board approved the proposal to allot equity shares of face value of Rs. 10/- each on preferential basis to LIC of India and/or its various schemes, Government of India on receipt of funds from them, and issue of necessary share certificates, if need be.

The Board will take such actions / decisions as may be necessary for implementing the aforesaid decision of the Board.

The Board also approved proposal to take necessary steps for getting the aforesaid shares listed on the Stock Exchanges where the Bank's Shares are already listed and to comply with all the necessary applicable statutory rules and regulations in this respect, and to do all such things / acts which are necessary or incidental for giving effect to the said decision of the Board.

The Board also accorded approval for fixing the Relevant Date is fixed as February 26, 2016.

The Bank has fixed minimum Issue Price at Rs. 52.51 calculated in accordance with the Regulation 76(1) of SEBI (ICDR) Regulations, for the proposed issue of equity shares to LIC of India by way of preferential allotment.

The Board also approved proposal to convene an Extraordinary General Meeting of the shareholders of the Bank on March 28, 2016 at 10.30 a.m. at Manipal.

Shares of SYNDICATE BANK was last trading in BSE at Rs.51.15 as compared to the previous close of Rs. 51.4. The total number of shares traded during the day was 399110 in over 1935 trades.

The stock hit an intraday high of Rs. 52.95 and intraday low of 50. The net turnover during the day was Rs. 20551762.

Source : Equity Bulls

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