Allahabad Bank pref issue to raise Rs 1,460 cr

The shareholders of Allahabad Bank on Saturday at an extraordinary general meeting approved the bank's proposal to issue equity shares to Life Insurance Corporation of India and the Centre on a preferential basis. The bank will issue 5.19 crore equity shares of Rs 10 each at a premium of Rs 182.94 to the Government, raising its stake to 59.46 per cent. The bank will raise close to Rs 1,003 crore.

It will issue 2.38 crore shares of Rs 10 each at a premium of Rs 182.94 to LIC (stake up to 11.71 per cent), mobilising Rs 460 crore.