Andhra Bank Fixes Price for Preferential Issue to Government

New Delhi: Andhra Bank said on Monday that the issue price for the proposed preferential allotment of equity to government has been fixed at Rs 90.69 per share.

"Issuance of equity shares by way of preferential allotment to government to the tune of Rs 120 crore...the issue price has been arrived at Rs 90.69 per share," the bank said in a filing to the BSE.

This price represents about a 4 per cent premium to Andhra Bank's closing price of Rs 87.20 per share on Monday.

The state-owned lender will issue over 1.32 crore equity shares on preferential basis to the government after it receives shareholders' approval for the same.

"The bank will consider issue and allotment of 1,32,31,888 equity shares of face value of Rs 10 each at a premium of Rs 80.69 per share to government after approval of shareholders of the bank at its ensuing Extraordinary General Meeting to be held on March 12, 2015," it said.

The government last week decided to infuse Rs 6,990 crore in nine public sector banks out of the current year's budget to strengthen their capital base.

The capital infusion has been done on the basis of their efficiency in performance.

State Bank of India, the country's largest lender, will get the maximum of Rs 2,970 crore, followed by Bank of Baroda (Rs 1,260 crore), Punjab National Bank (Rs 870 crore), Canara Bank (Rs 570 crore) and Syndicate Bank (Rs 460 crore).

Among others, Allahabad Bank will get Rs 320 crore, Indian Bank Rs 280 crore, Dena Bank Rs 140 crore and Andhra Bank Rs 120 crore.

Shares in Andhra Bank, on Monday, ended at Rs 87.20 apiece on the BSE, down 1.19 per cent from the previous close.