Indian Bank gets shareholders' approval to issue equity shares

According to Sebi norms, the bank must increase public shareholding to 25%

Indian Bank has got shareholders' approval to issue equity shares to bring down the government's shareholding in line with the Security and Exchange Board of India (Sebi)'s norms.

The approval was taken at the Bank's Annual General Meeting, which held at Chennai on Tuesday.

The Centre currently holds 82.10 per cent of the Bank's equity capital. In order to enhance the public shareholding to at least 25 per cent, according to Sebi guidelines, Bank had proposed to issue further 4.75 crore equity shares of face value of Rs 10.

The bank is planning to go for Follow-on Public Offer/Rights Issue/Qualified Institutional Placement/Preferential Issue/Private Placement.