Indian Overseas Bank to raise Rs 1500 crore in 2019-20

Last Updated: Fri, May 10, 2019 10:37 hrs
A labourer works on the sign of a bank building in the western Indian city of Ahmedabad

New Delhi: State-run Indian Overseas Bank (IOB) will raise up to Rs 1,500 crore in tranches through private placement and public issues in domestic or overseas markets, IOB said on Thursday.

In a regulatory filing, the bank said its board has approved a proposal where the bank will issue up to Rs 300 crore equity shares by way of Follow on Public Offer and Rights Issue, with or without participation from the government.

The shares could also be issued to employees or on preferential basis to LlC and other insurance companies, mutual funds (MFs) and qualified institutional buyers (QIBs) after obtaining the approval of the shareholders.

The bank board at its meeting held on Thursday considered and approved the Capital Plan of the Bank for the year 2019-20, which are - raise Tier II capital by issue of BASEL III Compliant Tier II Bonds upto a maximum extent of Rs 1,500 crore with or without applicable green shoe option, in one or more tranches on private placement to retail segment by way of public issue, either domestically or overseas, the filing said.