Corporation Bank has allotted 47,85,137 equity shares to the Government of India on a preferential basis.
The bank informed the BSE that the preferential allotment committee of the board of the bank, which held a meeting on Friday, has allotted 47,85,137 equity shares of Rs 10 each at a premium of Rs 416.32 a share to the Government on a preferential basis. This allotment will help the bank raise Rs 203.99 crore.
Consequent upon this, the issued and subscribed capital of the bank gets raised to 15,29,14,391 equity shares. With this preferential allotment, the holding of the Government in the bank gets increased from 58.52 per cent to 59.82 per cent.
The notification to the BSE said that the equity shares so allotted shall rank equally with the existing equity shares of the bank — including dividend, if any — and the same shall be locked in for a period of three years from the date of allotment — March 22, 2013.
It may be mentioned here that the March 15 extraordinary general meeting of the shareholders of the bank had given its approval for the preferential allotment to the Government.