Indian Overseas Bank gets board nod to raise up to Rs 1k cr equity capital

Indian Overseas Bank (IOB) on Wednesday said its board has approved raising of up to Rs 1,000 crore equity capital through issuance of shares via various modes.

The board approved the capital plan of the bank for 2022-23, IOB said in a regulatory filing.

It approved issuance of equity shares to a maximum of Rs 1,000 crore with appropriate premium to the public, by way of follow on public offer/rights issue with or without participation from government or issue of equity shares to Qualified Institutional Buyers (QIBs), the bank said.

Besides, it may issue shares to employees under Sebi regulations based on employee benefits and sweat equity, or issue shares on preferential basis to LIC and other insurance companies/mutual funds or QIBs.

The Chennai-based state-owned lender said it will seek shareholders' approval for raising the equity capital.

The board also approved raising tier II capital by issue of Basel III-compliant tier II bonds up to Rs 1,000 crore with or without applicable green shoe option on private placement basis. It may also include bonds issuance to retail segment through public issue domestically or overseas.

IOB stock closed at Rs 16.70 on BSE, up by 0.60 per cent from previous close.