Indian Overseas Bank is planning to augment capital through a rights issue of 20 crore equity shares of Rs. 10 each at a premium to be decided based on the market conditions.
The directors have also approved in principle to issue 20 crore fully convertible preference shares of Rs. 10 each by way of private placement. These shares will be converted into equity shares at a future period not exceeding five years from the date of allotment.
The premium will be decided at the time of issue.
Union Bank
The directors of Union Bank of India also approved the proposal raising equity capital by way of preferential allotment/ qualified institutional placements/rights issue on December 27.
