IOB gets shareholders nod for Rs 1,977 cr preferential issue

NEW DELHI: State-owned Indian Overseas Bank (IOB) on Friday said its shareholders have approved raising funds of up to Rs 1,977.63 crore via a preferential issue of shares to the government and Life Insurance Corporation (LIC).

The shareholders at the general meeting approved issuance of shares to the government and LIC on preferential basis at Rs 97.82 apiece, IOB said in a BSE filing.

Consequently, the government will pick up about 17.12 crore shares for Rs 1,675 crore while LIC will pick up about 3.09 crore shares amounting to Rs 302.63 crore, it said. Last fiscal, the Chennai-based bank got capital support of Rs 1,054 crore from the government.

Shares of IOB today closed at Rs 95.75, up 1.06 per cent over its previous close on the BSE.