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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.
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?
