Indian Overseas Bank on Monday said it has convened an extraordinary general meeting (EGM) next month to seek shareholders’ approval for issuance of preferential shares to government for Rs 4,100 crore capital infusion in 2020-21.
The EGM will be held on May 12, 2021 through video conferencing or other audio visual means, the bank said in a regulatory filing.
The meeting will consider and pass the resolution to create, offer and allot up to 246,54,23,932 shares of Rs 10 for cash at issue price of Rs 16.63 per equity share including premium of Rs 6.63 aggregating to Rs 4,100 crore on preferential basis to Government of India, it said.
With a view to comply with BASEL III requirements relating to capital adequacy, there is an ever increasing need to raise capital, the lender said.