Andhra Bank to allot 28.8 million shares to LIC on preferential basis

The bank intends to raise an additional equity capital of Rs 136 cr by allotting shares for cash at Rs 47.30 per share to the life insurance company

The board of directors of Andhra Bank today approved preferential allotment of 28.8 million equity shares of face value of Rs 10 to Life Insurance Corporation of India(LIC).

The bank intends to raise an additional equity capital of Rs 136.48 crore by allotting shares for cash at Rs 47.30 per share to the life insurance company. The decision will be referred to the shareholders' approval at the extraordinary general meeting to be held on March 21, 2016, according to a filing sent to the Bombay Stock Exchange(BSE).

Last week the bank has raised Rs 800 crore through private placement of nonconvertible Basel III compliant perpetual bonds in nature of debentures of Rs 10 lakh each.