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| Exchange Disseminated Time | Indian Overseas Bank has informed BSE that Government of India - Ministry of Finance - Department of Financial Services have conveyed their decision to infuse capital funds to the Bank to the extent of Rs. 1200 crore and advised the Bank to take all preparatory steps in this regard.
Accordingly the Board of Directors of the Bank at its meeting held on November 11, 2013 has considered and approved the following;
To issue Bank's equity shares of face value of Rs. 10/- with premium on preferential basis to Government of India and LIC of India (under its various schemes) up to an amount of Rs. 1626 crore (including premium).
To issue perpetual bonds to the extent of Rs. 2497 crore and to authorize our CMD to fix the size of the issue and finalize the terms and conditions including fixation of coupon rate depending upon the market conditions. CMD may further be authorized to take necessary required actions in connection with issue of perpetual bonds either domestically or overseas.
To constitute a Committee under the name and style of "Committee of Directors for Preferential Issue of shares" and delegated the following powers to the committee:
a) To fix the issue price of shares in accordance with SEBI /ICDR Regulations and determine the number of Shares to be issued to Government of India Rs. 1200 crore (including premium) and LIC Rs. 426 crore (including premium)
b) To finalize the agenda and approve the EGM Notice to be issued to Shareholders
c) To create, offer, issue and allot equity shares of Rs.10/- each (Rupees Ten only) for cash at such Issue Price as may be determined by the Committee of the Board in accordance with Regulation 76 (1) of SEBI ICDR Regulations aggregating (including premium) on receipt of funds from Government of India and LIC and its various schemes not exceeding Rs. 2100 crore.
d) To carry out all other matters incidental thereto.
Further the Board also considered and approved the convening of an Extraordinary General Meeting (EGM) of shareholders of the Bank on December 16, 2013 at Chennai for obtaining approval from shareholders for the aforesaid proposal. |
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