NEW DELHI, Feb 13:
J&K Bank will issue over 3.65 crore shares on preferential basis to the State Government to raise Rs 250 crore.
J&K Bank said the allotment to Government of Jammu & Kashmir, promoter and majority shareholder of the bank, will be at Rs 67.39 per share aggregating to over Rs 249.99 crore.
“It is proposed to offer, issue and allot on a preferential basis, equity shares of the Bank for an amount not exceeding Rs 250 crore to the J&K Government,” J&K Bank said in a regulatory filing.
It said it is raising funds to meet needs of bank’s growing business, including long term capital requirements for pursuing its growth plans and to maintain its capital adequacy ratio.
The bank will issue 3,65,55,051 equity shares to the State Government.
“The preferential issue is proposed to be made to the J&K Government, the promoter and majority shareholder of the bank, who have conveyed their intention to infuse capital into the bank,” it said.
With the preferential issue of shares, Jammu & Kashmir Government’s stake in the bank will rise to 56.45 per cent from 53.17 per cent as of now.
J&K Bank stock closed 0.51 per cent down at Rs 68.25 on BSE. (PTI)