The shareholders of Corporation Bank have approved a special resolution to issue equity shares on preferential basis to the Union Government and Life Insurance Corporation of India.
At the extraordinary general meeting on Monday, shareholders of the bank approved the special resolution to issue 15.66 crore shares worth ₹857 crore to the government, as also 2.81 crore shares worth ₹143 crore to LIC − both on preferential basis. Post allotment, the number of shares of the government will increase to 68.71 crore as against 53.05 crore pre-allotment. This works out to 67.20 per cent (63.33 per cent) in percentage wise terms. In the case of LIC though, the number of shares will go up to 21.69 crore (18.87 crore), but its share in terms of percentage will come down to 21.22 per cent (22.54 per cent).
Overall, the number of shares of the bank will increase to 102.24 crore post-allotment, as against 83.77 crore in the pre-allotment case.
On Monday, the Corporation Bank scrip closed at ₹44.15, down 0.11 per cent, against the previous close of ₹44.20.