Indian Overseas Bank (IOB) on Monday said its board of directors has approved proposal to raise capital to the extent of Rs 2,100 crore by issuing equity shares to Government of India (GoI) and LIC on preferential basis.
The board, which met on December 14, 2013, also approved proposal to raise Bank's equity of face value of Rs 10 with premium on preferential basis and or QIP up to Rs 350 crore at the price as determined under the SEBI's regulations, not diluting below 65 per cent of Government of India holding.
"This is over and above the original approval accorded by the Board on at its meeting held on November 11, 2013 to raise capital to the extent of Rs. 2100 crore," said IOB in a statement.
Following the announcement, shares of the company were trading at Rs 48.25 a piece, down 1.03 per cent from previous close on BSE.