Corporation Bank to raise Rs 857 crore issuing pref shares to govt

By: | Published: September 29, 2015 9:52 AM

State lender Corporation Bank today approved issuance of over 15.66 crore shares on preferential basis to government valued at about Rs 857 crore.

corporation bankState lender Corporation Bank today approved issuance of over 15.66 crore shares on preferential basis to government valued at about Rs 857 crore. (Express Photo)

State lender Corporation Bank today approved issuance of over 15.66 crore shares on preferential basis to government valued at about Rs 857 crore.

At the Extraordinary General Meeting (EGM) held in Mangaluru today, the bank also approved to issue over 2.8 crore equity shares to LIC worth over Rs 142.99 crore.

In a filing on BSE, Corporation Bank said the meeting of the shareholders resolved and approved “to issue 15,66,15,497 equity shares…at an issue price of Rs 54.72 per share, to the government i.e. the promoter.”

“…decision of government to infuse funds up to Rs 856,99,99,995.84 into the capital of the Bank, by way of issue and allotment of 15,66,15,497 equity shares of the bank…on preferential basis,” said the filing.

Corporation Bank also said it will issue 2,81,60,693 equity shares of the bank at an issue price (which is at premium) of Rs 50.78 per share to the Life Insurance Corporation of India (LIC), a shareholder.

In August, government had announced capital infusion of Rs 20,088 crore in 13 public sector banks, including in SBI, PNB, IDBI, Bank of Baroda, Canara Bank.

Shares of Corporation Bank today closed at Rs 44.15 apiece on BSE, down 0.11 per cent from previous close.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition