Public sector lender Allahabad Bank will raise over Rs 57.5 crore by issuing shares on preferential basis to LIC.
The decision was taken at the bank’s extraordinary general meeting held on March 30. “Life Insurance Corporation (LIC) has agreed to subscribe up to 1,32,44,282 equity shares of the bank on preferential basis subject to their shareholding restricted to 14.50 per cent of the post issue share capital of the Bank,” it said in the regulatory filing.
The issue price of the equity shares proposed to be issued and allotted to LIC on preferential basis has been calculated at Rs 43.42 per equity share, it said.
“Based on the issue price of the shares, the total capital fund infusion in the bank by LIC would be Rs 57.51 crore”, it said.(News Courtesy: NDTV)