Indian Overseas Bank to consider issue of shares to govt; stock ends 2% higher

The bank will consider the proposal to create, offer, issue and allot equity shares of face value of Rs10 each to the Government of India for an amount aggregating Rs4,360cr by way of preferential allotment.

Jan 14, 2020 10:01 IST India Infoline News Service

Indian Overseas Bank
Shares of Indian Overseas Bank ended 2% higher on the BSE after its board of directors will meet on January 21, 2020, to consider a proposal to create, offer, issue and allot equity shares of face value of Rs10 each to the Government of India for an amount aggregating Rs4,360cr by way of preferential allotment.

“We refer to our letter IRC/271 /2019-20 dated 27.12.2019 & IRC/280/2019-20 dated January 03, 2020, regarding capital infusion by the Central Government, in this regard a meeting of the Board of Directors of the Bank will be held on January 21, 2020, to inter alia consider the proposal to create, offer, issue and allot equity shares of face value of Rs10/- each to the Government of India for an amount aggregating Rs4,360cr by way of preferential allotment and other matters incidental thereto subject to subsequent approval by shareholders of the Bank at a general meeting / through postal ballot,” the bank said.

Stock view:
Indian Overseas Bank is currently trading at Rs11.38, up by Rs0.19 or 1.7% from its previous closing of Rs11.19 on the BSE.

The scrip opened at Rs11.19 and has touched a high and low of Rs11.66 and Rs11.15 respectively.

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