IOB receives board approval to raise up to Rs1,000 crore in equity

16 Jun 2022 , 02:24 PM

The Indian Overseas Bank (IOB) said on Wednesday(15-06-2022) that its board of directors has approved raising up to Rs 1,000 crore in equity capital through a variety of share issuances. The bank’s capital strategy for 2022-23 was approved by the board, according to a regulatory filing by IOB.

It allowed the issuing of equity shares with an acceptable premium to the public up to Rs 1,000 crore via a follow-on public offer/rights issue with or without government participation, as well as the issuance of equity shares to Qualified Institutional Buyers (QIBs), according to the bank.

Furthermore, it may offer shares to workers in accordance with Sebi laws based on employee perks and sweat equity, or issue shares to LIC and other insurance companies/mutual funds or QIBs on a preferential basis.

The state-owned lender located in Chennai said it will seek shareholder permission before increasing equity capital.

The board also authorized raising tier II capital through the private sale of Basel III-compliant tier-II bonds up to Rs 1,000 crore with or without the appropriate green shoe option. It might also comprise bonds sold to the retail market through a public offering, either locally or internationally. On the BSE, IOB finished at Rs 16.70, up 0.60 percent from the previous close.