Bank of India to raise Rs642 crore by selling shares to LIC, New India Assurance
Bank of India to issue and allot up to 22.60 million shares of `10 each
New Delhi: State-owned Bank of India (BoI) on Monday said it will raise up to ₹ 641.99 crore by selling shares to Life Insurance Corp (LIC) and New India Assurance Company to fund its business growth and meet global risk norms.
The bank has decided to issue and allot up to 22.60 million shares of ₹ 10 each for cash at ₹ 283.50 per share, including premium of ₹ 273.50 per equity share, at a price as determined in accordance with Sebi regulation aggregating up to ₹ 641.99 crore on preferential basis, BOI said in a notice to the BSE.
The bank has called extraordinary general meeting of the shareholders on 7 March, it said.
LIC currently holds 12.53% stake in Bank of India. Following the fresh investment, stake of LIC would further go up. Shares of the bank closed at ₹ 233.15 per unit, down 5.33% on the BSE.
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