Bank of India has decided to issue fresh equity shares with the intention of increasing its public shareholding to 25%, which is required to be done under SEBI rules.
Bank of India to Raise Rs 2500 Crore Fresh Equity : Bank of India (BoI) has decided to issue fresh equity shares worth 2500 crores. The board of this public sector bank approved this decision on Monday, 25 April. The bank has decided to issue fresh equity shares so that its public shareholding can be increased to 25 per cent. It is necessary to do this under the new rules of SEBI. At present, 81.41 percent of the shares of the bank are with the Government of India.
The bank’s board approved the decision
This decision was approved in the meeting of the bank’s board of directors on Monday. Bank of India has given this information in a regulatory filing. The bank has said in its filing that new equity shares of 2500 crores can be issued in the form of qualified institutional placement (QIP), follow on public offer (FPO) or preferential issue.
Public shareholding to increase from 18.59% to 25%
The current public shareholding of the bank is 18.59 percent, which will increase to 25 percent after the issue of new shares. Under SEBI’s public shareholding rules, a non-promoter public shareholder must hold at least 25 per cent in a listed company.
The approval of the shareholders of the Bank on this proposal will be taken at the next Annual General Meeting (AGM) or in the Extraordinary General Meeting (EGM) convened for the same purpose. On Monday, Bank of India’s shares closed at Rs 48.75, which is 1.52 percent lower than the previous closing price.