Indian Financial institution to lift as much as ₹4,000 cr

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The state-owned Indian bank announced Tuesday that its board of directors has given approval to raise up to 4,000 crore through stock sales.

The bank’s shareholders approved the raising of capital on March 2.

The Board of Directors, at its meeting on March 9, 2021, approved the bank’s raising of up to £ 4,000 (including premium) equity through the Placement of Qualifying Institutions (QIP) in one or more tranches, Indian Bank said in an official filing.

Fundraising would be subject to all legal and regulatory approvals, it said.

After the QIP, government stake in the bank will decrease from the existing level. The government, as a sponsor of the bank, holds 88.06 percent of the Indian Bank, headquartered in Chennai.

The lender said it would have to increase its public stake to at least 25 percent within three years from August 3, 2018.