Allahabad Bank has received shareholders’ approval for a preferential issue of Rs 400 crore and a Qualified Institutional Placement (QIP) of Rs 320 crore for shoring up the equity base of the lender.
The bank will issue and allot 4,45,83,147 equity shares of face value of Rs 10 each at an issue price of Rs 89.72 (including premium of Rs 79.72) per equity share on preferential basis to government.
Further, the bank sought nod of the shareholders to access the market for issue of equity shares through Qualified Institutional Placement (QIP) aggregating up to Rs 320 crore in such a manner that government’s holding will continue to be at 55.24 per cent of the total paid-up capital.
