Bank of India to issue fresh equity shares upto Rs2,500 crore; stock zooms ~1.5%

21 Jun 2022 , 09:40 AM

Bank of India (BoI) is considering raising up to Rs2,500 crore in new equity capital in order to expand the public stake in the bank to 25% in order to comply with regulatory requirements. The current public stake in Bank of India is 18.59%.

As per the SEBI norms, listed companies are required to comply with the minimum public shareholding guidelines.

The lender stated in the filing that it intends to raise further equity shares for cash as such premium up to Rs2,500 crore in such a way that the central government would always hold not less than 51% of the bank’s paid-up capital, whether at a discount or premium to the market price.

Bank of India stated that the capital will be raised in one or more tranches over a one-year period beginning on the day the resolution was passed and that it will seek shareholder approval for the same at its upcoming annual general meeting on July 15, 2022.

The shares can be issued by qualified institutions placement (QIP), public issue, rights issue, private placement, preferential issue, or other means, according to the bank.

At around 9.38 AM, Bank of India’s counter was trading 1.71% higher at Rs41.75 against its previous close of Rs41.05 on NSE. It touched intraday high and low of Rs41.95 and Rs41.50 respectively.