Allahabad Bank up 3%, gets shareholders nod for QIP

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Moneycontrol Bureau

Shares of Allahabad Bank rallied 3 percent intraday trade on Thursday. The bank has got the shareholders' approval for a preferential issue of Rs 400 crore and a Qualified Institutional Placement (QIP) of Rs 320 crore for shoring up the equity base of the lender.

“At an extra-ordinary general meeting of the bank, the shareholders approved the preferential issue of Rs 400 crore to government against capital infusion and shareholders to access the market for issue of equity shares through Qualified Institutional Placement (QIP) aggregating up to Rs 320 crore in such a manner that government's holding will continue to be at 55.24 per cent of the total paid-up capital,” it said.

Allahabad Bank will issue and allot 4,45,83,147 equity shares of face value of Rs 10 each at an issue price of Rs 89.72 (including premium of Rs 79.72) per equity share on preferential basis to government.

At 10:52 hrs Allahabad Bank was quoting at Rs 95.75, up Rs 2.55, or 2.74 percent on the BSE.