Syndicate Bank prices share preferential allotment at Rs 123.35

MUMBAI: State-run Syndicate Bank said on Tuesday it has fixed a minimum price of 123.35 rupees for its preferential allotment to the government to raise as much as 6.33 billion rupees.

It plans to sell 51.3 million shares, taking the government's holding post the allotment to 69.5 percent from 66.5 percent now.

Other state-run banks, including Indian Overseas Bank, UCO Bank and United Bank of India have said they would preferentially allot shares to the government in return for capital infusion.

In December, India's cabinet approved additional capital infusion of 60 billion rupees ($1.3 billion) into state-run banks to strengthen their capital adequacy and to increase the government's stake in them.

At 2.24 p.m., shares of Syndicate Bank were up 1.14 percent at 115.5 rupees.