Bank Of India Plans To Raise Rs 2,500 Crore Through Equity Shares

Bank of India will raise Rs 2,500 crore by issuing fresh equity shares in order to comply with 25 per cent minimum public shareholding requirement

Bank Of India Plans To Raise Rs 2,500 Crore Through Equity Shares

Bank of India will raise up to Rs 2,500 crore

New Delhi:

State-owned Bank of India (BoI) on Monday said it will raise up to Rs 2,500 crore by issuing fresh equity shares in order to comply with the minimum public shareholding requirement of 25 per cent.

"The board of directors of the bank at its meeting held on April 25, 2022, considered and approved the capital raising plan up to Rs 2,500 crore by issuing fresh equity capital in the form of Qualified Institutional Placements (QIP), Follow-on Public Offer (FPO) or preferential issue," BoI said in a regulatory filing.

The main purpose of the capital raising plan is to increase the minimum public shareholding from the present 18.59 per cent to 25 per cent or above in order to comply with the minimum public shareholding requirements as per the Securities and Exchange Board of India (SEBI) rules, it added.

The lender said it has decided to seek permission of its shareholders in the ensuing annual general meeting (AGM)/extra-ordinary general meeting (EGM) called for this purpose.

Stock of Bank of India ended at Rs 48.75 apiece on BSE, down by 1.52 per cent from the previous close.

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