Allahabad Bank plans to raise Rs 500 crore via issue of equity shares

Allahabad Bank is planning to raise up to Rs 500 crore by issuance of equity shares to qualified institutional buyers (QIBs). In this regard, the bank will seek nod of its Board of Directors at the extraordinary general meeting scheduled September 28.

Allahabad Bank said it will create, offer and issue shares of face value of Rs 10 each for cash at an issue price including premium to QIBs on QIP in such a manner so that government will continue to hold not less than 52 per cent of the paid-up equity capital of the bank.

Further, the allotment of equity shares to QIBs will be completed within 12 months from the date of the passage of the resolution.