Indian Overseas Bank will raise close to Rs 1,980 crore by making preferential allotment to Government of India and Life Insurance Corporation of India.
IOB’s Committee of Directors for preferential issue of shares, on February 21, fixed Rs 97.82 (including premium of Rs 87.82) as the price for the allotment of equity shares on preferential basis to the GoI and LIC.
While GoI will be allotted up to 17,12,32,876 shares for its capital contribution of up to Rs 1,675 crore, LIC would be allotted up to 3,09,37,467 shares (5 per cent of pre-issue capital) for its capital contribution of up to Rs 302.63 crore.
IOB has said that the number of shares to be allotted to both Government of India and LIC and its various schemes will vary according to the capital contribution from GoI and LIC and its various schemes respectively within the amounts mentioned above.