State-owned Bank of India on Saturday said its shareholders have approved a plan to raise up to Rs 2,500 crore in fresh equity capital through various channels. The public stake in Bank of India (BoI) now stands at 18.59%, and the bank had recommended increasing it to 25% to meet regulatory requirements.
“The current public shareholding in the bank is 18.59 per cent and the bank will have to increase it to 25 per cent or more to comply with the minimum public shareholding requirements. Therefore, the bank proposes to issue fresh equity capital to increase public shareholding. 25 per cent or more,” BoI had said in a regulatory filing. “The lender proposes to raise the new equity shares for cash as such premium” 2,500 crore in such a manner that the central government shall at all times keep not less than 51 per cent of the paid-up capital of the bank, whether at a discount or at a premium to the market value,” BoI had further said in a regulatory filing. According to Bank of India The capital will be raised in one or more phases during a year after the passage of the resolution.
According to a statement by Bank of India, the decision was taken at the annual general meeting (AGM) of the bank held on July 15. According to the bank, shareholders have authorized the plan to raise fresh equity capital 2,500 crore including share premium through public offering, right offering, preferential offer, qualified institutional placement, or private placement. Agenda for acceptance and adoption of audited financial statements as well as declaration of dividend for the financial year ended 31st March, 2022 2 (20%) per share for the financial year 2021-2022 was also addressed in the meeting.
“All the three agenda items were passed with requisite majority,” BoI said in a regulatory filing today.
(with inputs from PTI)
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