Allahabad Bank to issue shares worth Rs 58 crore to LIC

NEW DELHI: Public sector Allahabad Bank will raise Rs 58 crore by issuing over one crore shares to LIC on preferential basis.

"Resolved...to create, offer, issue and allot upto 1,32,44,282 equity shares of Rs 10 each for cash at an issue price of Rs 43.42 per equity share aggregating up to Rs 58 crore on preferential basis to Life Insurance Corporation of India or its various schemes," it said in a BSE filing.

Bank's extraordinary general meeting of the shareholders will be held on March 30 to transact the said business, it added.

The issuance of shares will result into a rise of shareholding in the Bank to 14.50 per cent from present stake of 12.61 per cent.

While, the shareholding of the government will come down to 61.38 per cent from 62.73 per cent.

Allahabad Bank scrips closed 5.39 per cent higher at Rs 50.85 apiece on BSE today.