State Bank of Bikaner approves rights issue

State Bank of Bikaner and Jaipur today informed the stock exchanges that its board of directors fixed the price for its proposed rights issue of equity shares. The price which was approved yesterday, was fixed at Rs 390, with a face value of Rs 10 each and premium of Rs 380 each.

The bank expects to raise Rs 780 crore through the rights issue, and March 17, 2011 has been fixed as the record date for the purpose of ascertaining shareholders entitled to receive the letter of offer and participate in the issue. The issue will open on March 28, 2011 and closes on April 11, 2011.

The rights issue will be done at a ratio of two equity shares for every five equity shares held as on the record date.