Bank of Baroda allotted 12 crore shares in NARCL under preferential allotment

Bank of Baroda (BoB) has been allotted 12 crore shares in the National Asset Reconstruction Company Ltd (NARCL) under preferential allotment, the state-run lender said in a regulatory filing on March 24.

The purchase price was stated as "Rs 10 per equity share" in the submission made by the bank to the stock exchanges.

Before the current round of preferential allotment, BoB held a 13.27 percent equity stake in NARCL, which now stands at 9.90 percent, the bank said.

The lender said it has an "aggregate holding of 13,94,95,455 equity shares", which includes "existing shareholding of 1,98,00,000 and preferential allotment of 11,96,95,455" out of total paid up capital of 140,90,45,000 shares of Rs 10 each.

NARCL was incorporated as an asset reconstruction company in July 2021. It received a licence from the Reserve Bank of India (RBI) in October, enabling it to start operations as a so-called bad bank to take over and dispose of stressed assets worth Rs 2 lakh crore of commercial banks.

Ahead of BoB announcement, Bank of India said it invested nearly Rs 109 crore in NARCL.

"We hereby inform that on March 21, 2022, bank has invested Rs 108.81 crore in National Asset Reconstruction Company Ltd (NARCL), under preferential share issue," it told the stock exchanges.