Indian Bank seeks shareholders nod for Rs 4,000 cr equity capital raise

State-owned Indian Bank on Tuesday said it held an extra-ordinary general meeting (EGM) to seek shareholders nod for raising equity capital up to Rs 4,000 crore through various means.

Extraordinary General Meeting (EGM) of the bank was held on 2nd March, 2021 through video conferencing/other audio visual means in accordance with government guidelines, the bank said in a regulatory filing.

The EGM was chaired by bank MD&CEO Padmaja Chunduru who informed that sole agenda of the meeting was to seek approval of shareholders by way of passing special resolution to raise equity capital up to Rs 4,000 crore through QIP/FPO/rights issue or any combination of these, Indian Bank said.

"The resolution seeks to enable the bank to create, offer, issue and allot equity shares by way of follow on public offer and/or on a private placement basis or any other mode approved by GOI and RBI. The issue proceeds will enable the Bank to strengthen its capital base to support growth," it said.

As of now, government as the promoter of the bank holds 88.06 per cent in the Chennai-headquartered Indian Bank.

The lender said it is required to increase its public shareholding to at least 25 per cent within a period of three years from 3rd August 2018.

"Accordingly, the bank proposes to raise equity capital through QIP or FPO or rights issue to meet its growth capital requirement as also to increase the public shareholding in the bank. These options will be exercised by the Bank based on the prevailing market conditions."

The board of director of the bank had in January approved for raising equity capital upto Rs 4,000 crore through various available options subject to requisite approvals.

Indian Bank shares closed at Rs 137.75 apiece on BSE, up 0.22 per cent from the previous close.