State-run lender Allahabad Bank on Saturday said it has planned to raise up to Rs.500 crore by issuing equity shares by way of qualified institutions placement (QIP) in one or more tranches.
"…the Bank has planned to access capital market for raising capital upto the extent of Rs.500 crore (including premium) by issuing equity shares by way of Qualified Institutions Placement in one or more tranches…" the bank said in a regulatory filing to Bombay Stock Exchange.
The issuance of equity shares will be floated in such a manner that the Government of India shall continue to hold not less than 52 percent of the paid-up equity capital of the bank, it said, adding that it would seek its Board of Directors approval at the extraordinary general meeting scheduled September 28.
Owing to unfavorable market conditions, the earlier approval/consent of the shareholders for raising the equity capital of the bank upto Rs.500 crore (including premium) by way of qualified institutions placement could not materialised, the public sector lender said.
Further, it said the allotment of equity shares through qualified institutions placement route will be completed within 12 months from the date of the passage of the resolution.