BOI shareholders approve raising fresh equity capital up to ₹2,500 cr
Premium- On Saturday, the state-owned Bank of India said that its shareholders have approved a plan to raise up to 2,500 crores in fresh equity capital through a variety of means.
On Saturday, the state-owned Bank of India said that its shareholders have approved a plan to raise up to 2,500 crores in fresh equity capital through a variety of means. The public shareholding in Bank of India (BOI) is now 18.59%, and the bank had recommended raising it to 25% in order to meet regulatory requirements.
"The present public shareholding in the bank is 18.59 per cent and the bank has to increase this to 25 per cent or above in order to comply with the minimum public shareholding requirements. Hence, the bank proposes to issue fresh equity capital to increase the public shareholding to 25 per cent or above," BoI had said in a regulatory filing. “The lender said that it proposes to raise fresh equity shares for cash as such premium up to an amount of ₹2,500 crore in such a way that the central government shall at all times hold not less than 51 per cent of the paid-up capital of the bank, whether at a discount or premium to the market price," BOI had further stated in a regulatory filing. According to Bank of India, the capital will be raised in one or more tranches over the course of a year following the resolution's passing.
The decision was made at the bank's Annual General Meeting (AGM), which was conducted on July 15, according to a statement from Bank of India. According to the bank, the shareholders authorised the plan to raise new equity capital up to ₹2,500 crore, including share premium, through a public offering, right offering, preferential offering, qualified institutional placement, or private placement. The agendas for approving and adopting the audited financial statements for the fiscal year that ended on March 31, 2022, as well as for declaring a dividend of ₹2 (20%) per share for the fiscal year 2021–2022, were also addressed at the meeting.
“All the three agenda items were passed with requisite majority," said BOI in a regulatory filing today.
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(With inputs from PTI)
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