Chennai-based Indian Overseas Bank plans to raise additional funds from a follow-on equity issue and Rs.1,000 crore by issue of bond. In a regulatory filing on Monday, the Bank said its Board has approved the issue of 125 crore equity shares at an appropriate premium to the public by way of follow- on public offer/rights issue with or without participation of Government of India. The Board also decided that the issue could also be to qualified institutional buyers, employee shareholders, issue on preferential basis to insurers and mutual funds.
The bank closed last fiscal with a net profit of Rs.831 crore as against a net loss of about Rs.8,527 crore. The total income for the year ended 31.03.2021 stands at Rs.22,525 crore as against Rs.20,766 crore for FY20. The bank Board also approved the issue of Basel III compliant tier II bonds up to Rs.1,000 crore in one or more tranches on private placement or public issue.
Shares of Indian Overseas Bank on Monday closed at Rs. 21.05 per share, up by 1.69 percent from its previous closing on the National Stock Exchange.