IOB seeks shareholders' approval to issue preferential shares to govt

These preferential shares, including share premium, would aggregate to Rs 21.57 billion

The Indian Overseas Bank (IOB) on Wednesday informed stock exchanges that it had sought its shareholders’ approval to issue equity shares of face value of Rs 10 each to the central government on a preferential basis which is subject to applicable regulatory provisions. These would aggregate to Rs 21.57 billion, including share premium.

In its disclosure to Bombay Stock Exchange (BSE), the bank said, “We refer to the captioned subject and inform that the committee of directors for the issue of equity share capital in its meeting held today approved the following conditions.”

• Convening of Extraordinary General Meeting (EGM) of the bank’s shareholders will be held on November 2 in Chennai
• To seek shareholders’ approval to issue equity shares of face value of Rs 10 each to the government on a preferential basis aggregating to Rs 21.57 billion (including share premium) is subject to applicable regulatory provisions.
• The relevant date for the determination of the issue price is October 3, 2018, in terms of Sebi (ICDR) Regulations, 2009.