Syndicate Bank gets EGM nod to raise Rs 460 crore via pref issue

Issued 37.47 million shares to government of India at an issue price of Rs 122.75 per share

The shareholders of Manipal-based public sector lender Syndicate Bank today passed a resolution sought by the bank to raise Rs 460 crore capital by way of preferential allotment to the government of India at the extraordinary general meeting.

In order to comply with Basel-III requirements relating to capital adequacy, the Bank proposes to raise Rs 460 crore by issuing 37.47 million equity shares to government of India at an issue price of Rs 122.75 per equity share with a face value of Rs 10 per share.

Currently, the government holds 67.39% equity in the Bank and post preferential allotment, its holding will increase to 69.24% as the promoter. The non-promoter holding will come down to 30.76% from 32.61% presently.