Govt infuses Rs 200-crore capital in Andhra Bank | business | Hindustan Times
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Govt infuses Rs 200-crore capital in Andhra Bank

Andhra Bank has received nearly Rs 200 crore capital infusion from the government and in return shareholders of the bank have agreed to allot over three crore shares on preferential basis.

business Updated: Dec 23, 2013 15:27 IST

Public sector lender Andhra Bank has received nearly Rs 200 crore capital infusion from the government and in return shareholders of the bank have agreed to allot over three crore shares on preferential basis.



The bank, in a filing with BSE, on Monday said the recently held extraordinary general meeting of the shareholders passed a special resolution to allot shares at Rs 66.59 apiece (including a premium of Rs 56.59 per share).



"...the government has infused the capital of Rs 199,99,99,952.01 on December 20, 2013 towards issuance and allotment of equity shares on preferential basis," Andhra Bank said in the filing.



This is "pursuant to passing of a special resolution by the shareholders of the bank at the extraordinary general meeting of shareholders held on December 19, 2013, at Hyderabad, authorising the issuance of 3,00,34,539 equity shares of Rs 10 each to Government of India on preferential allotment basis at Rs 66.59 per equity share (including a premium of Rs 56.59 per share)," it said.



The government holds 58%, while FIIs, DIIs and others hold 11.19%, 11.78% and 19.03%, respectively, as on September 30.



Andhra Bank shares were trading at Rs 62.50 apiece on BSE, up 2.80% in the afternoon trade.