Syndicate Bank to raise equity capital of Rs 7,840 cr

Syndicate Bank will raise up to Rs 7,840 crore by issuing equity shares through various modes including preferential issue to the government.

The annual general meeting of the bank took place today in which it proposed to raise the equity capital of the lender.

As part of the special resolution, it is sought to raise up to Rs 5,000 crore by creating equity shares by way of qualified institutional placement or rights issue or follow on public issue or any another mode in one or more tranches, the bank said in a regulatory filing.

Besides, it will "create, offer, issue and allot up to 37,59,76,691 equity shares of face value of Rs 10 each for cash at an issue price of Rs 75.51 including premium of Rs 65.51 ... aggregating up to Rs 2,839 crore on preferential basis to the government," the bank said.

Stock of the bank closed 4.51 per cent down at Rs 39.20 on BSE today.