State-owned Allahabad Bank proposes to raise Rs 500 crore from share sale to Qualified Institutional Buyers (QIB) to fund business expansion.
The bank propose to constitute a committee to offer and allot up to such number of equity shares of face value of Rs 10 each for cash aggregating upto Rs 500 crore in one or more tranches to Qualified Institutional Buyers (QIB), Allahabad Bank said in a regulatory filing on the stock exchanges.
The shares should be offered through Qualified Institutional Placement (QIP) basis in a such a manner that the Government of India holding shall continue to hold not less than 52 per cent of the paid up equity capital of the bank, it said.
Meanwhile, the government has made capital infusion of Rs 33 crore, or 75 per cent, of the Rs 44 crore alloted to the bank. The bank expects to get remaining 25 per cent or Rs 11 crore by end of December 2016 or earlier based on performance on certain parameter.