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Allahabad Bank is going to raise Rs 57.5 crore through issuing shares on a preferential basis to LIC.
At the bank’s extraordinary general meeting which was held on March 30, the decision was taken.
It has said in the regulatory filing that “Life Insurance Corporation (LIC) has agreed to subscribe up to 1,32,44,282 equity shares of the bank on preferential basis subject to their shareholding restricted to 14.50 per cent of the post issue share capital of the Bank.”
It further said that equity shares that are proposed to be issued and allotted to LIC on preferential basis issue price has been calculated at Rs 43.42 per equity share.
“Based on the issue price of the shares, the total capital fund infusion in the bank by LIC would be Rs 57.51 crore”, it added.
