The board of directors of Allahabad Bank
, in its meeting held on Feb 27, approved raising equity capital for an amount aggregating upto Rs6,896cr through preferential allotment of equity shares.
The amount will be raised by the Government of India against their capital infusion of Rs6,896cr into the bank, subject to requisite approval of shareholders and other statutory authorities.
The bank made the announcement via a regulatory filing on Thursday evening, post market hours. Despite the news, shares of the bank were down ~1% on Thursday morning on the BSE.
Allahabad Bank is currently trading at Rs46.60 down by Rs0.55 or 1.17% from its previous closing of Rs47.15 on the BSE.
The scrip opened at Rs47.25 and has touched a high and low of Rs47.30 and Rs46.60 respectively. So far 15,16,730 (NSE+BSE) shares were traded on the counter.