Download Unicorn Signals App

Powered By EquityPandit
BUSINESS

BOI will Seek Shareholder’s Approval for Raising Rs 16,000 Crore

Bank of India (BOI) on Wednesday, said that the bank plans to raise up to Rs 16,000 crore through new issuance of shares and bonds and, for that it would seek approval of shareholders at its Extraordinary General Meeting (EGM) held on 19, September.

The bank said in a regulatory filing, that it plans to raise Rs 16,000 through the issuance of fresh equity shares worth up to Rs 8,000, the equity share would be introduced in such a way that the government’s shareholding does not fall below 51%. It will also seek approval for issuing perpetual debt instruments, including Non-Convertible Debentures (NCDs), for an amount not exceeding more than Rs 8,000 crore.
The allotment of securities will be through Qualified Institutional Placement (QIP), public issue, private placement, rights issue or other such modes of issue, with or without over-allotment options.
BOI said from past many years the bank has been growing at a significant rate and now, there is a requirement of constant capital in the long term to meet the bank’s growing requirement. The capital raised would help the bank to improve its distributable reserves and, will put the bank in a better position for achieving its turnaround plans in a time-bound manner, it added.
The bank will also seek the permission of shareholders to accumulate losses from the share premium account of the bank. The proposed set-off would present the current financial position of the bank and would not affect any ratios such as Book Value Per Share, Earning Per Share (EPS), Return On Equity (ROE).

Get Daily Prediction & Stocks Tips On Your Mobile