Promoter's stake to come down to 22% from 28% post QIP: BoR

5027 Investors following Bk Of Rajasthan. Share this News with them.

0

Like this story, share it with millions of investors on M3

Promoter's stake to come down to 22% from 28% post QIP: BoR

PK Tayal said Bank of Rajasthan had received the shareholders’ approval for a QIP upto Rs 250 crore. However, clearance from the Securities and Exchange Board of India was awaited.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Bank of Rajasthan to raise upto Rs 250cr via QIP Bank of Rajasthan rubbishes SEBI's fund transfer allegation RBI orders special audits at Bank of Rajasthan ALSO READ See latest News about Bk Of Rajasthan See previous management interviews See what other Experts & Brokerages are saying about Bk Of Rajasthan Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

Bank of Rajasthan is looking to raise Rs 250 crore via a qualified institutional placement (QIP) in the coming months. In an extraordinary general meeting, the shareholders of the bank have given the nod to complete the QIP in the next three months.

The board's decision to go for the QIP is important because it will dilute the promoter's stake. Currently, promoter and dominant shareholder the Tayals have come under the regulator's scrutiny for allegedly increasing their stake through front companies.

Confirming the news, its Ex-Chairman PK Tayal said the bank had received the shareholders' approval for a QIP upto Rs 250 crore. However, clearance from the Securities and Exchange Board of India was awaited.

"Post QIP the promoter's stake will come down to 22% from 28% in the bank," he added.

Here is a verbatim transcript of PK Tayal's exclusive interview with CNBC-TV18. Also watch the accompanying video.

Q: Is this an old QIP nod that you got from the regulator or is it a recent on in the last couple of days because it seems strange that SEBI which has banned some of your group entities from trading etc will give you a nod for a capital raising plan now?

A: We have got a share holder's note for the clearance of QIP yesterday for Rs 250 crore.

Q: So this one is cleared by SEBI recently?

A: It is cleared by share holders.

Q: We believe at that meeting that was held the share holders withdrew a proposal to discuss appointment of six directors and one of those directors includes you, apparently your share holders are quite upset about what has been happening at Bank of Rajasthan?

A: It is that we decided to withdraw.