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Bangalore-based Vijaya Bank plans to raise Rs 1,200 crore through a preferential allotment of equity shares to the Government of India, the public sector lender told BSE in a filing on Friday. According to the filing, the bank would convert 1.2 billion perpetual non-cumulative preference shares (PNCPS) of Rs 10 each into 304.64 million equity shares of Rs 10 each at a premium of Rs 29.39 aggregating to Rs 1,200 crore.
The bank’s board has decided to hold an extraordinary general meeting of its shareholders on February 19 for their approval for the issue.
Earlier this month, the government had approved the conversion of PNCPS of three public sector banks, including Vijaya Bank, into equity. The move will result in raising the government stake in these banks. The other two banks are Indian Bank and Uco Bank. Following the conversion of PNCPS into equity, the government stake in Vijaya Bank will go up to 71.85 per cent from the existing 55.02 per cent.
The Bank’s stock closed at Rs 38.40, a decline of 1.16 per cent over the previous close on BSE on Friday.
