Karur Vysya Bank (KVB) has decided to issue bonus shares in the ratio of 2:5 as well as to issue rights equity shares in the same ratio. Accodingly, two bonus shares of Rs 10 each would be issued for every five shares of Rs 10 each held to the shareholders and two rights shares would be issued for every five shares held as on the record date of September 18, 2010.
The board has decided that the issue ratio would be on the post-bonus equity capital and the price per right share would be at Rs 150 per share. The bank has also decided to increase the foreign investment cap from all sources, including FDI, FII, NRI, to 35% from the existing limit of 24%.
KVB MD & CEO PT Kuppuswamy told FE, “We will be able to enhance our equity capital to Rs 106 crore from the existing Rs 54 crore and the net owned fund to close to Rs 2,000 crore from existing Rs 1,620 crore.?