Extraordinary General Meeting (EGM) of the financial institution was held on 2nd March, 2021 by way of video conferencing/different audio visible means in accordance with authorities tips, the financial institution stated in a regulatory submitting.
The EGM was chaired by financial institution MD&CEO Padmaja Chunduru who knowledgeable that sole agenda of the assembly was to hunt approval of shareholders by the use of passing particular decision to raise equity capital as much as Rs 4,000 crore by way of QIP/FPO/rights subject or any mixture of those, Indian Bank stated.
“The resolution seeks to enable the bank to create, offer, issue and allot equity shares by way of follow on public offer and/or on a private placement basis or any other mode approved by GOI and RBI. The issue proceeds will enable the Bank to strengthen its capital base to support growth,” it stated.
As of now, authorities because the promoter of the financial institution holds 88.06 per cent within the Chennai-headquartered Indian Bank.
The lender stated it’s required to extend its public shareholding to not less than 25 per cent inside a interval of three years from third August 2018.
“Accordingly, the bank proposes to raise equity capital through QIP or FPO or rights issue to meet its growth capital requirement as also to increase the public shareholding in the bank. These options will be exercised by the Bank based on the prevailing market conditions.”
The board of director of the financial institution had in January authorized for elevating equity capital upto Rs 4,000 crore by way of varied out there choices topic to requisite approvals.
Indian Bank shares closed at Rs 137.75 apiece on BSE, up 0.22 per cent from the earlier shut.