State-owned UCO Bank today said it will sell 7.17 crore shares to LIC on a preferential basis, which may fetch about Rs 270 crore to the bank.
The board of the bank at its meeting has approved a proposal for issue of 7.17 crore shares of Rs 10 each to Life Insurance Corporation of India (LIC) on a preferential basis at a price to be determined in accordance with Sebi regulation, UCO Bank said in a statement.
With the preferential share allotment, LIC stake in the bank will increase by 5.5 per cent.
Currently, insurance companies, including LIC, holds 12.02 per cent stake in the bank.
At today’s market price, the bank will raise about Rs 270 crore by the share allotment. on preferential basis to LIC.
The stock of the bank was trading at Rs 37.50, down 1.06 per cent, on BSE.