South Indian Bank soars over 7% after lender's board approves rights issue

South Indian Bank share price: South Indian Bank shares rose over seven per cent on BSE on Thursday (February 22, 2024) after the lender's board approved the issuance of fully paid-up equity shares to the tune of Rs 1151 crore. 

South Indian Bank shares closed the trading session higher by 9.71 per cent, or Rs 3.16, at Rs 35.70.  

The stock reached the day's high of Rs 35.95, an upside of 10.48 per cent from its previous close of Rs 32.54.

Stating about the board of directors' approval of the rights issue, the bank said that the approval includes: 

a. The total number of rights equity shares and rights issue size: 5,231,85,254 rights equity shares each on a fully-paid-up basis for an amount aggregating up to Rs 1151.01 crores (assuming full subscription with respect to rights equity shares).
b. Rights Issue Price: Rs 22 per rights equity share fully paid up (including a premium of Rs 21 per rights equity share) on application.
c. Record date: Tuesday, February 27, 2024
d. Rights issue period:
1. Rights issue opening date: Wednesday, March 6, 2024; and
2. Rights issue closing date: Wednesday, March 20, 2024.
e. Outstanding equity shares:
1. Prior to the rights issue: 209,27,41,018 equity shares of the bank;
2. Post Rights Issue#: 261,59,26,272 equity shares of the bank. 

Assuming a full subscription with respect to rights equity shares.