Andhra Bank to seek EGM nod for issue of shares to Government of India

The Board of Directors of Andhra Bank at its meeting held on November 13, 2013, has considered and approved the proposal to issue equity shares by way of preferential allotment to Government of India to the tune of Rs. 200 Crore, in consonance with the Government of India Notification dated October 22, 2013, at an issue price to be determined on the Relevant Date (November 19, 2013) as per SEBI (Issue of Capital & Disclosure Requirements) Regulations, 2009.

The Board approved proposal to raise capital through Qualified Institutional Placement / Follow-on Public Offer by way of equity shares aggregating upto such amount and in such a manner that the Central Government's stake in the equity paid-up capital of the bank will not go below such percentage as may be decided by Government of India, subject to necessary approvals, in consonance with Government of India, Notification dated October 22, 2013 conveying its in-principle approval for raising capital from market at an appropriate time as the bank may decide.

An Extra-ordinary General Meeting of shareholders of the Bank will be held on December 19, 2003 at 11 a.m. at Sri Sathya Sai Nigamagamam, 8-3-987/2, Sri Nagar Colony, Hyderabad - 500 073 for seeking their approval for raising capital as above. The Notice Convening the Extraordinary General Meeting will be sent to all the shareholders of the Bank as well as publish in the newspapers.

The Board authorised the Chairman and Managing Director / Executive Director in the absence of the Chairman and Managing Director to do all acts, deeds and things as may be necessary and expedient, including to communicate to regulatory / statutory authorities, in this regard and to give effect to the aforesaid approvals.

Shares of Andhra Bank was last trading in BSE at Rs.59.40, down by Rs.0.65 or 1.08%. The stock hit an intraday high of Rs.61.10 and low of Rs.58.70.

The total traded quantity was 2.28 lakhs as compared to 2 week average of 3.96 lakhs.

Source : Equity Bulls

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