IOB gets board's nod to raise funds via preferential allotment route

Bank to issue tier-I perpetual bonds of Rs 1,500 cr

Indian Overseas Bank has got Board's approval to raise money through preferential issue and through tier-I and tier-II bonds.

The company informed the Bombay Stock Exchange (BSE) that the company board has given its approval for issuing equity shares to a maximum extent of 130.11 crore. It added that funds would be araised through follow-on public offers, rights issues, QIPs, shares offered to employees and issue of shares on preferential basis to QIBs without diluting the government's holding below 52 per cent.

Bank got the board's nod to raise tier-I and tier-II capital by the issue of additional tier-I perpetual and tier-II BASEL III compliant bonds of Rs 1,500 crore and Rs 1,000 crore respectively.