The third largest state-run lender Bank of Baroda today alloted 1.96 equity shares, aggregating 5% of its equity capital, to Life Insurance Corporation (LIC) via a preferential allotment, raising Rs 1,645 crore, as part of its recapitilisation by the Centre.
The bank issued the equity shares to LIC at an issue price of Rs 840.10 a share, Bank of Baroda said in a filing to the BSE. While it has alloted 1,46,57,600 shares to LIC Life Fund, 6,93,410 were given to Pension Fund; 20,00,000 for Superannuation fund and 15,00,000 to Gratuities.
The bank has alloted 1,26,295 shares to LIC's Samridhi Plus Fund, 1,57,869 shares to to India Wealth Plus Fund; 1,42,082 to India Endwonment Plus Growth Fund; 3,00,048 to India Market Plus Growth Fund of the Corporation.
On Wednesday, BoB shareholders had accepted a board proposal to issue Rs 1,645 crore preferrential shares to LIC, after the cash-strapped government asked LIC to pick the stake on its behalf. Last year, the government had infused Rs 2,461 crore into the bank.
The city-based BoB posted 20.7% rise in net profit at Rs 1,289.85 crore in the third quarter of the current fiscal on the back of sound growth in its core income.
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