Indian Bank Shares Surge as Board Considers Rs 4,000 Crore Capital Raise

29 Aug 2023 , 12:35 PM

Indian Bank’s shares witnessed a nearly 3 % surge in value on Monday following the company’s announcement of its intention to explore a capital infusion of up to Rs 4,000 crore through multiple avenues.

The bank’s board of directors has scheduled a crucial meeting on August 30, 2023, to deliberate upon the proposal for raising to Rs 4,000 crore. The public sector lender officially communicated this announcement in a filing to the stock exchanges.

The envisaged capital augmentation will be explored through various avenues, including Qualified Institutional Placement (QIP), Follow-on Public Offering (FPO), and Rights Issues. The bank retains the flexibility to implement these approaches individually or in combination.

Notably, the bank has already secured shareholder approval for the proposed fundraising initiative. The forthcoming Committee of Directors meeting is poised to delve into the specifics of the capital-raising strategy and its intricate modalities.

Indian Bank’s strategic move to bolster its capital base reflects its commitment to fortifying its financial position and supporting its growth trajectory. As the board convenes to discuss these pivotal decisions, market participants keenly await the outcomes that will shape the bank’s future endeavors.