Bank of India to raise fresh equity capital up to Rs 2,500 cr to comply with minimum public shareholding norm

State-owned Bank of India (BoI) is mulling to raise up to Rs 2,500 crore in fresh equity capital as it requires to increase the public shareholding in the bank to 25 per cent to comply with regulatory norms.

Presently, public shareholding in Bank of India is 18.59 per cent.

According to the Sebi norms, listed companies are required to comply with the minimum public shareholding guidelines.

"The present public shareholding in the bank is 18.59 per cent and the bank has to increase this to 25 per cent or above in order to comply with the minimum public shareholding requirements...Hence, the bank proposes to issue fresh equity capital to increase the public shareholding to 25 per cent or above," BoI said in a regulatory filing.

The lender said that it proposes to raise fresh equity shares for cash as such premium up to an amount of Rs 2,500 crore in such a way that the central government shall at all times hold not less than 51 per cent of the paid-up capital of the bank, whether at a discount or premium to the market price, the bank said in the filing.

Bank of India said the capital is to be raised during the period of one year from the date of passing of the resolution in one or more tranches and it will seek shareholders' approval for the same in its ensuing annual general meeting on July 15, 2022.

The shares can be issued by way of qualified institutions placement (QIP), public issue, rights issue, private placement, preferential issue or such other modes, the bank added further.

Shares of Bank of India closed at Rs 41.00 apiece on BSE, down by 1.68 per cent from the previous close.